Vanguard solo 401k to allow incoming rollovers?!

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SocalLiving
Posts: 102
Joined: Mon Jun 26, 2017 9:56 am
Location: California

Re: Vanguard solo 401k to allow incoming rollovers?!

Post by SocalLiving »

neurosphere wrote: Thu Jul 29, 2021 9:24 am I have the same question. Due to a giant reduction in household income anticipated for 2020, it now makes sense for me to make Roth 401k contributions, which Fidelity does not allow. So I'm considering moving the plan to Vanguard. I'm hoping someone else has recently done this and can share their experience. I'm assuming (but have yet to confirm) that Vanguard allows Roth contributions and also will do Roth conversions within the plan.
I can confirm that Vanguard allows Roth contributions in the solo 401k. My husbands original solo 401k with Vanguard was not set up for Roth contributions so I called them last year and it took 5 minutes on the phone for them to add the option. He was then able to split contributions online between Roth and pre-tax within a few days.
Try giving them a call at their Small Business number 800-992-7188. I have actually found them to be quite helpful.
HomeStretch
Posts: 6852
Joined: Thu Dec 27, 2018 3:06 pm

Re: Vanguard solo 401k to allow incoming rollovers?!

Post by HomeStretch »

Last I checked, Vanguard Solo 401k does not allow in-plan Roth rollovers. e-Trade does. If you are age 59-1/2+, mainstream Vanguard (and Fidelity) Solo 401k plans allow in-service distributions that can then be converted to a Roth IRA.
Soon2BXProgrammer
Posts: 2636
Joined: Mon Nov 24, 2014 11:30 pm

Re: Vanguard solo 401k to allow incoming rollovers?!

Post by Soon2BXProgrammer »

neurosphere wrote: Thu Jul 29, 2021 9:24 am
Careful wrote: Tue Jun 08, 2021 8:53 pm Has anyone moved a Fidelity Solo 401K to Vanguard Solo 401K yet? Chose Fidelity over Vanguard b/c of the ability to move other $$ into Fidelity, though we haven't actually pulled the trigger on it. Fidelity has been exceptionally low in fees - is Vanguard the same for the solo 401K?
I have the same question. Due to a giant reduction in household income anticipated for 2020, it now makes sense for me to make Roth 401k contributions, which Fidelity does not allow. So I'm considering moving the plan to Vanguard. I'm hoping someone else has recently done this and can share their experience. I'm assuming (but have yet to confirm) that Vanguard allows Roth contributions and also will do Roth conversions within the plan.

Edited to add: I clicked on a "get started" type link for opening a solo 401k at Vanguard in order to browse the form and get an idea of the process. But it takes me to a link to a "Brokerage Account Application for Trusts" e-form. Hmm, so I thought perhaps a 401k is a type of trust in this case, but then clicking ahead it asks to upload a copy of the trust and enter grantor information. :oops: I get to this same Trust form from two different solo 401k pages. :oops: Such as this one, https://investor.vanguard.com/small-bus ... -solo-401k, "For existing clients, click here to start your digital experience". Not a good "digital experience"!
Even with the updated plan documents at vanguard there are no in plan Roth conversions.
Earned 34 (and counting) credit hours of financial planning related education from a regionally accredited university, but I am not your advisor.
Greenberry
Posts: 558
Joined: Fri Oct 26, 2007 12:20 pm

Re: Vanguard solo 401k to allow incoming rollovers?!

Post by Greenberry »

Update, for after the plan is established and you have account numbers:
- Vanguard's forms for Vanguard IRA into Individual 401k rollover contributions are still not available online, you have to call and talk to a specialist.
- https://investor.vanguard.com/small-bus ... idual-401k for the phone number
- They'll ask why you want to move it, mentioning pro-rata rule as part of after-tax to Roth conversion worked.\
- Specialist mentioned some limitations regarding what can be transferred in-kind vs. liquidation. Apparently only mutual funds, not ETFs? For ETFs and other things, they'll liquidate, transfer dollars, and purchase.
- They email you Form INDVRA "Individual 401(k) Rollover Contribution from a Vanguard Account" to fill out, and mail, fax, or email it back.
bzcat
Posts: 63
Joined: Sat Jun 04, 2011 10:31 am

Re: Vanguard solo 401k to allow incoming rollovers?!

Post by bzcat »

I did a restatement and IRA rollover about a month ago at Vanguard.

I did an ETF to Mutual Fund conversion after talking with a rep, before sending in my paper work, so I could do an in kind transfer. I'm really glad I did, I would have spent weeks out of the market.

Their back of the house process is really slow and error prone. I uploaded the completed forms directly using Message Center, and pages still got "lost" because someone at V printed them out and then rescanned them to submit to another department. :shock:

Good luck.
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