IRA -> i401K at VG using Amended Plan held by VGI, non-brokerage acct

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
jujubean
Posts: 3
Joined: Wed Dec 21, 2016 7:04 am

IRA -> i401K at VG using Amended Plan held by VGI, non-brokerage acct

Post by jujubean » Thu Jul 11, 2019 3:16 am

Hello, trying to get assets in an IRA into an i401K with Vanguard held by VGI, non-brokerage.

I am wondering if there are others that have experience going from IRA to an i401K @ VG that would care to share any tips, tricks or pitfalls in doing so.

I will refer to the Individual 401k mostly as i401K for brevity.

My situation is the following:
- I have an IRA, Roth and SEPIRA at a Roboadvisor
- I would like to end up with an Individual 401K at Vanguard
- I have an empty (zero-bal) Individual 401K at Fidelity
- I would like to end up with my assets in VG funds, NOT held in a brokerage account, thus held by VGI


My questions are these:
- Any good suggestions on which(how) Plan to start with to transfer the plan to VG?
- Should I ‘rollover’ my IRA to Fidelity i401K, and then “amend” my plan and transfer the assets to VG?
- Is the Fidelity i401K a good plan to “amend” as the plan to be used with my VG i401K
- Can I do skip moving the IRA to the Fidelity i401K, and do a custodian->custodian transfer from the IRA to a Vanguard i401K ?
- Is there a better source for plans other than my Fidelity i401K to use as a starting point for an amended plan to be used at VG?
- Any big down sides to having a non-Vguard issued plan/amended plan at Vanguard?
- Can the Roth, IRA, and SEP-IRA be combined within the right Plan?
- Is there anything important I am overlooking?
- Any help on logistics, terminology, and how-to is super-appreciated.




Special thanks to both Spirit Rider, Nisprius, and others for the excellent related help and info provided.



*More info about why non-brokerage assets held by VGI found here:
viewtopic.php?t=206273

*VTIP removed due to prior misunderstanding of term
Last edited by jujubean on Sun Jul 14, 2019 4:44 pm, edited 2 times in total.

retiredjg
Posts: 36802
Joined: Thu Jan 10, 2008 12:56 pm

Re: IRA -> i401K at VG using Amended Plan held by VGI, non-brokerage acct

Post by retiredjg » Thu Jul 11, 2019 8:42 am

I have no idea what you are talking about in most of your post, but I think it might be helpful to know about the work retirement plan you are actually contributing to at the present time. In fact, it is not even clear if you are working.

Spirit Rider
Posts: 10802
Joined: Fri Mar 02, 2007 2:39 pm

Re: IRA -> i401K at VG using Amended Plan held by VGI, non-brokerage acct

Post by Spirit Rider » Thu Jul 11, 2019 10:26 pm

jujubean wrote:
Thu Jul 11, 2019 3:16 am
I will refer to the Individual 401k mostly as i401K for brevity.
Individual 401k is not a generic term. Individual 401k is a marketing term used by Vanguard and some others, Solo 401k is a marketing term used by still others and Fidelity uses Self-Employed 401k. The actual generic term used by the IRS is one-participant 401k.
My situation is the following:
- I have an IRA, Roth and SEPIRA at a Roboadvisor
- I would like to end up with an Individual 401K at Vanguard
- I have an empty (zero-bal) Individual 401K at Fidelity
- I would like to end up with my assets in VG funds, NOT held in a brokerage account, thus held by VGI
My first question is why not just use Fidelity/Schwab or if you need a designated Roth account Etrade/TD Ameritrade. They are all perfectly adequate one-participant 401k plans. In this day and age there is just not that much of a benefit to having a one-participant 401k at Vanguard to justify jumping through all the hoops.
My questions are these:
- Any good suggestions on which(how) Plan to start with to transfer the plan to VG?
- Should I ‘rollover’ my IRA to Fidelity i401K, and then “amend” my plan and transfer the assets to VG?
- Is the Fidelity i401K a good plan to “amend” as the plan to be used with my VG i401K
Fidelity is just as good as any of the other one-participant 401k plans. However, you under a mis-impression. A 401k plan belongs to the sponsoring EmployerXYZ. It just happens to have a document, administrator, record keeper, custodian, trustee, fiduciary, etc... at one of the providers. You would not be amending an "Etrade, Fidelity, Schwab or TD Ameritrade one-participant 401k plan to Vanguard. You would be using Vanguard's adoption agreement to be amending EmployerXYZ's 401k plan from the previous provider to Vanguard. It is still the same 401k plan.
- Can I do skip moving the IRA to the Fidelity i401K, and do a custodian->custodian transfer from the IRA to a VTIP Vanguard i401K ?
What is VTIP? Vanguard's Individual 401k will not accept IRA rollovers.
- Is there a better source for plans other than my Fidelity i401K to use as a starting point for an amended plan to be used at VG?
Doesn't matter.
- Any big down sides to having a VTIP/non-Vguard issued plan/amended plan at Vanguard?
Here again what is VTIP?
- Can the Roth, IRA, and SEP-IRA be combined within the right Plan?
A Roth IRA can not be rolled over to anywhere except another Roth IRA. Only pre-tax IRA assets from a traditional, SEP and/or SIMPLE IRA and other qualified plans can be rolled over to a 401k.
- Is there anything important I am overlooking?
- Any help on logistics, terminology, and how-to is super-appreciated.
I still don't get the point.

Post Reply