MySolo401k.net

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Sheela
Posts: 2
Joined: Thu Aug 03, 2017 6:21 pm

MySolo401k.net

Post by Sheela » Thu Aug 03, 2017 6:35 pm

New to the world of Independent Contracting. I have a PLLC, s-corp. I want to start a solo 401k. Most quotes I have gotten are around $1200-1500 to create the plan documents and then $600-800 for annual fees. I came across an on line company, called MySolo401k.net. Their fees are much more reasonable. Any experience with this company?

DSInvestor
Posts: 10557
Joined: Sat Oct 04, 2008 11:42 am

Re: MySolo401k.net

Post by DSInvestor » Thu Aug 03, 2017 7:01 pm

I used a Self Employed 401k with Fidelity. No fees, low cost investment options, rollover options, excellent customer service. Were there features that you wanted that were not available in the standard plans offered by Fidelity, TDAmeritrade, Schwab or Vanguard?

livesoft
Posts: 56382
Joined: Thu Mar 01, 2007 8:00 pm

Re: MySolo401k.net

Post by livesoft » Thu Aug 03, 2017 7:04 pm

I have had a solo 401(k) at TDAmeritrade for a couple of years now. So far the cost is $0.00. Yep, ZERO.

As just noted, many very reputable major financial institutions have no-cost individual 401(k)s.
This signature message sponsored by sscritic: Learn to fish.

WL2034
Posts: 383
Joined: Tue May 21, 2013 10:36 pm

Re: MySolo401k.net

Post by WL2034 » Thu Aug 03, 2017 7:13 pm

Fidelity (I have personally used, and would recommend), Vanguard, TDA, Schwab (I believe) all offer solo-401k without additional fees other than the ERs of the chosen funds. If I recall correctly, Vanguard doesn't allow Admiral Shares in solo-401k and doesn't allow incoming rollovers, which is why I chose Fidelity at the time. I would strongly encourage to use one of the free custodians.

avalpert
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Joined: Sat Mar 22, 2008 4:58 pm

Re: MySolo401k.net

Post by avalpert » Thu Aug 03, 2017 7:18 pm

Do you have any employees or expect to in the near term or so?

What are you looking to get out of the 401k?

As others mentioned, you can open a free Individual 401k account at many brokerages if that fits your needs.

ERISA Stone
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Joined: Tue Jun 24, 2014 8:54 am

Re: MySolo401k.net

Post by ERISA Stone » Thu Aug 03, 2017 8:12 pm

As others have mentioned, there is generally no need to pay for an individual 401(k) plan. The only reason I can think of is if you want to take advantage of aftertax (nonRoth) contributions. No i401(k) providers offers this feature for free.

Other than that the only difference I see is:
Consultation regarding investment rules (e., investing in real estate, precious metals, private companies, tax liens, promissory notes, etc.)

simas
Posts: 53
Joined: Wed Apr 04, 2007 5:50 pm

Re: MySolo401k.net

Post by simas » Fri Aug 04, 2017 1:48 pm

"take advantage of aftertax (nonRoth) contributions. "
->"No i401(k) providers offers this feature for free. "

Does anyone happens to know a good site doing comparison of the costs associated with plans that have such options? I have mostly read The Finance Guy blog post on the plan he created manually.

Similar situation - starting consulting this year, would have some small amount of income (~60k) that I don't use for living expenses.

Wants
- no employees, not planning to have any. sole proprietor
- want plan with ability to do backdoor roth (after tax contributions up to the limit with in-service transfer into Roth IRA)
- do not care about loan options , not planning to take any


Thank you!

ERISA Stone
Posts: 1280
Joined: Tue Jun 24, 2014 8:54 am

Re: MySolo401k.net

Post by ERISA Stone » Fri Aug 04, 2017 2:39 pm

simas wrote:"take advantage of aftertax (nonRoth) contributions. "
->"No i401(k) providers offers this feature for free. "

Does anyone happens to know a good site doing comparison of the costs associated with plans that have such options? I have mostly read The Finance Guy blog post on the plan he created manually.

Similar situation - starting consulting this year, would have some small amount of income (~60k) that I don't use for living expenses.

Wants
- no employees, not planning to have any. sole proprietor
- want plan with ability to do backdoor roth (after tax contributions up to the limit with in-service transfer into Roth IRA)
- do not care about loan options , not planning to take any


Thank you!
Do you mean The Finance Buff? If so, his article is the best source I'm aware of.

simas
Posts: 53
Joined: Wed Apr 04, 2007 5:50 pm

Re: MySolo401k.net

Post by simas » Fri Aug 04, 2017 3:28 pm

Yes, The Finance Buff, sorry for confusion.

Just trying to see if anyone else looked at this and found the plan that works without creating it the same way he (TFB) did. Etrade, etc.

I am familiar with 'normal' options (Vanguard, Fidelity), have used them before for myself and my wife, just not think they offer the backdoor roth
if you happen to know if any other, it would help

Thank you

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