Has anyone used Solo401k.com?

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Topic Author
jt4
Posts: 40
Joined: Wed Feb 06, 2019 5:13 pm

Has anyone used Solo401k.com?

Post by jt4 » Fri Oct 11, 2019 2:19 pm

Hi Bogleheads,

Has anyone used Solo401k.com (i.e. the Nabers Group) for their self-directed solo 401k?

I'd greatly appreciate your feedback and review of their services.

____________
I'm looking to set up a self-directed solo 401k for my self-employment income. The reason why I'm seeking to use a self-directed plan is so that I can make after-tax voluntary contributions (these are different than Roth) up to a minimum of either $56K (for 2019, under 50) or my net self-employment income.

I've done some research on multiple companies that offer "IRS-approved" self-directed 401k plans, and Solo401k.com appeared to be the best to me. They also offer a relatively low $400 setup fee and a $100 yearly document/plan fee.
Last edited by jt4 on Thu Oct 17, 2019 3:58 pm, edited 1 time in total.

renue74
Posts: 1775
Joined: Tue Apr 07, 2015 7:24 pm

Re: Has anyone used Solo401k.com?

Post by renue74 » Fri Oct 11, 2019 2:45 pm

I just researched a solo 401k.

Vanguard offers it and waives the fees if you have X amount in accounts with them.

In Jan. 2020, I will choose to open with them.

simas
Posts: 465
Joined: Wed Apr 04, 2007 5:50 pm

Re: Has anyone used Solo401k.com?

Post by simas » Fri Oct 11, 2019 2:45 pm

sorry, no direct experience with solo401k.com. I use their competitor (?) https://discountsolo401k.com/ for 3 years now and very impressed with customer service responsiveness. Set up prices slightly higher , overall satisfied customer. and yes, I picked them for after-tax non roth contributions option and leveraging the plan to save money into Roth every year (after-tax -> plan -> Roth)

Topic Author
jt4
Posts: 40
Joined: Wed Feb 06, 2019 5:13 pm

Re: Has anyone used Solo401k.com?

Post by jt4 » Fri Oct 11, 2019 2:47 pm

renue74 wrote:
Fri Oct 11, 2019 2:45 pm
I just researched a solo 401k.

Vanguard offers it and waives the fees if you have X amount in accounts with them.

In Jan. 2020, I will choose to open with them.
I could be mistaken, but I don't believe that Vanguard offers the ability to do after-tax contributions (not Roth) to allow the use of the Mega-Backdoor Roth. Thanks for your input.

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AerialWombat
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Re: Has anyone used Solo401k.com?

Post by AerialWombat » Sat Oct 12, 2019 12:48 am

When I was researching all this last year, I ultimately found no reason to use a company like this. I have zero interest in holding any of my real estate inside the 401k, so didn’t need the self-directed feature. I went with E-Trade for my solo 401k account. There are no fees, and they permit all the extra features you’d want except self-directed.
“Life doesn’t come with a warranty.” -Michael LeBoeuf

simas
Posts: 465
Joined: Wed Apr 04, 2007 5:50 pm

Re: Has anyone used Solo401k.com?

Post by simas » Sat Oct 12, 2019 7:55 am

AerialWombat wrote:
Sat Oct 12, 2019 12:48 am
When I was researching all this last year, I ultimately found no reason to use a company like this. I have zero interest in holding any of my real estate inside the 401k, so didn’t need the self-directed feature. I went with E-Trade for my solo 401k account. There are no fees, and they permit all the extra features you’d want except self-directed.
Do you get after tax non roth contributions up with E-Trade account out of the box? specifically ability to contribute up to 56k a year in combination of employee contributions, employer profit sharing, and after tax contributions ? when I looked 3 years ago , no provider offered it out of the box.

i.e. how it worked for us, in addition to other employment, I have done consulting (with my wife materially participating in the business making it qualified joint venture de facto). As such, in addition to my primary employment 401k plan, and her primary employment 403b plan, we opened Solo401k plan, put employer profit sharing into that plan, and then topped it up with after tax non Roth contributions up to regulatory limits and per IRS guidance in publication 560. These after tax non-Roth contributions (Mega Backdoor Roth) allow us to effectively increase Roth accounts by tens of thousands of dollar a year, each year, for each of us. I happily pay $100 in plan maintenance for that ability knowing I have support, person to talk to, plan reviews, etc. I am yet to see 'mainstream provider' to offer after tax (non-Roth) contributions in Solo 401k plan, may be ETrade wised up and now can do, thus the interest.

As you, I have zero desire to buy real estate or anything else inside of my retirement plan.

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Pete12
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Re: Has anyone used Solo401k.com?

Post by Pete12 » Sat Oct 12, 2019 8:45 am

jt4 wrote:
Fri Oct 11, 2019 2:19 pm
Hi Bogleheads,

Has anyone used Solo401k.com (i.e. the Nabers Group) for their self-directed solo 401k?

I'd greatly appreciate your feedback and review of their services.

____________
I'm looking to set up a self-directed solo 401k for my self-employment income. The reason why I'm seeking to use a self-directed plan is so that I can make after-tax voluntary contributions (these are different than Roth) up to a minimum of either $55K (for 2019, under 50) or my net self-employment income.

I've done some research on multiple companies that offer "IRS-approved" self-directed 401k plans, and Solo401k.com appeared to be the best to me. They also offer a relatively low $400 setup fee and a $100 yearly document/plan fee.
Yes I signed up for their service earlier this year. My goal was the same as yours, to maximize after tax contributions which can then be rolled over to Roth IRA as a “mega backdoor” contribution.

My original solo 401k was at Fidelity and I rolled the funds over to a non prototype account still with Fidelity, which is working seamlessly under the new plan.

Nabers seem to do a good and efficient job with the plan setup but be aware they will try and upsell other services to you which you probably don’t need. They also started spamming me about “investing” in bitcoin but I managed to unsubscribe to these emails.

Overall I would recommend them so long as you educate yourself and know what you are doing before pressing the button.

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