Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

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cowdogman
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by cowdogman »

MP123 wrote: Tue May 14, 2024 10:31 pm
HomeStretch wrote: Tue May 14, 2024 9:35 pm
cowdogman wrote: Tue May 14, 2024 6:48 pm … I'm wondering if I should rollover 100% of our current 401(k) assets to our Vanguard IRAs (we're both over 59.5 YO) and move our 401(k) to Schwab with no assets--and then make 2024 contributions when we're ready. …
Yes this works.
Yes. I'd leave a small token balance in the plan just so Schwab has something to work on, hopefully avoiding any hassles or questions about amending a zero balance plan (which I think is ok anyway).

Of course you'll need to give some thought to your 5500-EZ filing now that the plan balance will be below $250k, assuming it was above previously.

Or just terminate it if you don't need the contribution space and Backdoor Roth anymore.
Thanks both of you.

I was thinking I'd continue filing the 5500-EZ even with a balance under $250,000--just to avoid an IRS letter asking why I didn't file.

Termination is tempting (just to avoid thinking about these issues) but we're using the Roth space.

I have already done one "in service distribution" under 5.01 of the Plan in order to reduce the amount going to Schwab to about $150,000, but I think I will take the Trad account down to about $1,000 and the Roth account to zero. (One answer I got yesterday from Schwab (that I think is wrong) is that Schwab can transfer the Trad assets in kind, but that I needed to request a check for the Roth assets.) I don't see any limits under the Vanguard Plan on the number or frequency of in service distributions. Anybody disagree?
dingus_khan
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by dingus_khan »

I have a Vanguard prototype solo 401k with traditional and roth subaccounts. I have never funded the roth subaccount. If I'd like to transfer/amend the 401k to a new provider, am I limited to those with roth options like ETrade? Or could I transfer to a provider like Fidelity and just ignore the existing empty roth account?
harvestbook
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by harvestbook »

I decided to just terminate my 401k and roll over into Vanguard Traditional and Roth IRAs. Took maybe 25-30 minutes to call SmallBiz and the rep basically did all the forms over the phone and I Docusigned. She confirmed that accounts with zero balance wouldn't transfer to Ascensus. I already have the 5500EZ filled out, just waiting for the final settlement amount. She said it takes one to three business days to roll over.

I am basically retired. My wife is still working but will probably terminate her plan and hope Fidelity offers a Roth 401k by the time a year has passed. We have HSA and a brokerage at Fidelity and not really into adding another firm at this point in our lives and the hassle of extra paperwork, forms, and resulting risks is not appealing.
I'm not smart enough to know, and I can't afford to guess.
khackett
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by khackett »

HomeStretch wrote: Wed May 15, 2024 7:40 am
khackett wrote: Tue May 14, 2024 11:16 pm Hi there.
I think I've done something wrong here and I'm totally overwhelmed. I spent hours today with Fidelity on the phone trying to figure out how I should be moving this plan... they refused to tell me if I was amending or WHAT, so I took my best guess and said 'amend' but ??? I don't know. The woman on the phone also insisted that the plan should be numbered '002', but boards here say to keep the plan number 001?

I've already submitted the papers and have no contact info for the person at Fidelity who told me she'd email me her info... How do I fix this? I'm assuming the plan # on the paperwork is wrong.

Also... Am I closing the Vanguard account or not? Do I file a 5500 or no?
Welcome to the forum.

If you need to fix anything on your Fidelity paperwork, you need to call them.

If you are amending your Solo 401k plan from Vanguard to Fidelity’s:

1. Yes, choose “amend” and not “new plan” on the Fidelity forms.

2. Choose 1/1/24 as the amendment date UNLESS you have already made 2024 Roth contributions to your Vanguard plan. As the Fidelity plan does not allow Roth deferrals, you would need to pick a 2024 amendment date after the date of your last 2024 Roth contribution.

3. Your plan sequence # remains the same if you are amending. If it is 001 at Vanguard then it is 001 at Fidelity.

4. Notify Vanguard that you are amending your plan to another provider so they don’t try to transfer your zero $ Solo 401k account(s) to Ascensus. At some providers your accounts remain accessible online after the transfer out so you can access past history and statements. With the move to Ascensus, download everything you need from the Vanguard website before the transfer date as continued access at Vanguard after that date may not be available.

5. As you are amending your plan, you don’t need to file a Form 5500-EZ for this transfer. You just need to continue to comply with the annual Form 5500-EZ filing requirements and, if/when you terminate the plan, the final Form 5500-EZ filing requirement.
Thanks so much for all of that. MAN let me tell you I have been really disappointed with Fidelity's customer service. If Schwab was able to handle transfers bank to bank online I'd go with them.
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cowdogman
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by cowdogman »

After another unhelpful email and then call with Schwab this morning, I've removed all but $1,000 from the Vanguard Trad and Roth 401(k) accounts ($2,000 total) and will let them be transferred to Ascensus. If Fidelity (where we already have accounts) ever adds a 401(k) Roth option I'll move the Plan there from Ascensus. It's worth the Ascensus fees to avoid Schwab. Now I have to close the Schwab brokerage account.
Wrench
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by Wrench »

Wrench wrote: Wed May 15, 2024 7:03 am
MP123 wrote: Tue May 14, 2024 10:31 pm
HomeStretch wrote: Tue May 14, 2024 9:35 pm
cowdogman wrote: Tue May 14, 2024 6:48 pm … I'm wondering if I should rollover 100% of our current 401(k) assets to our Vanguard IRAs (we're both over 59.5 YO) and move our 401(k) to Schwab with no assets--and then make 2024 contributions when we're ready. …
Yes this works.
Yes. I'd leave a small token balance in the plan just so Schwab has something to work on, hopefully avoiding any hassles or questions about amending a zero balance plan (which I think is ok anyway).

Of course you'll need to give some thought to your 5500-EZ filing now that the plan balance will be below $250k, assuming it was above previously.

Or just terminate it if you don't need the contribution space and Backdoor Roth anymore.
Exactly what I am doing. Left one share of VTSAX in Vanguard i401k, rolled over everything else. Unfortunately, the rollover at Vanguard is hung up - I filled out the form, signed it with Medallion signature guarantee and overnighted it to proper address. It has been received by Vanguard, but they are "awaiting a check" to complete rollover. What?! I specifically requested a rollover in-kind. I called (got through quickly after phone tree), talked to someone in retirement accounts, and they are "looking into it". They are supposed to get back to me today. It looks like my form was routed improperly at Vanguard. Nothing about this whole situation has been easy or straightforward. It is a giant PITA. I now sort of wish I had just let it go to Ascensus, but I am in too deep now to change my plans.

Wrench
Just a follow-up. Vanguard did get back to me in <24 hours. I used the wrong form apparently. The rep filled out the right form for me, sent it by secure mail and I was able to docusign to submit. Now transfer is in process. He then explained how to do the same for spouse's account. (Despite the negative feedback Vanguard customer service usually gets, my experience was very positive and essentially zero wait time after getting through phone tree). He said it could take 5-7 business days for rollover to complete though it could happen quicker. After completion, I will rollover the one share left in Vanguard i401k to self directed solo 401k set up through mysolo401k with brokerage at Fidelity. Roth, Pre-tax and After-tax accounts all set up there and ready to go.

Wrench
nun
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by nun »

FYI, just an update on my Schwab experience.

Schwab are very helpful and have great phone reps that are available 24/7 and have answered all my Individual 401k questions. The down side is that the answer is always to send me another form to fill out.

The Schwab Individual 401k experience is like stepping back 15 years. The account setup and TOA are both on forms that are either mailed or dropped off at a local Schwab office. The processing of the forms is fast and two days after I dropped them off I had a welcome email. However, I needed to call Schwab again to get a temporary password for the account. Now I can see my account, but to fund it I need to fill out a TOA paper form as they can't do the TOA online and a change of beneficiaries also needs a paper form. As I don't have a Schwab regular brokerage account I'll also have to send Schwab checks to make future Individual 401k contributions. Some will call it annoying, but I'm still at the quaint stage. When it reaches annoying I'll be looking at Fidelity or just closing the thing out.
nun
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by nun »

Does "amending" an Individual 401k to a new provider generate a 1099-R?
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southerndoc
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by southerndoc »

nun wrote: Wed May 15, 2024 8:11 pm Does "amending" an Individual 401k to a new provider generate a 1099-R?
No. An amendment or restatement doesn't generate a 1099-R. The only way it would is if you get a check for your closed accounts and don't deposit it into the new accounts within 60 days.
TexasRads
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by TexasRads »

cowdogman wrote: Wed May 15, 2024 12:24 pm After another unhelpful email and then call with Schwab this morning, I've removed all but $1,000 from the Vanguard Trad and Roth 401(k) accounts ($2,000 total) and will let them be transferred to Ascensus. If Fidelity (where we already have accounts) ever adds a 401(k) Roth option I'll move the Plan there from Ascensus. It's worth the Ascensus fees to avoid Schwab. Now I have to close the Schwab brokerage account.
What’s so bad about using Schwab?

I was contemplating rolling over all of my vanguard assets - brokerage, ira and solo401k to them. Since I’ll have a brokerage account I can do online contributions to the solo401k and they don’t have any annoying charges as far as I can see (ie ascensus annual fee) .

I have a Roth 401k component so they would be a more viable transfer partner

People say their customer service should be than vanguard ?
nun
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by nun »

TexasRads wrote: Wed May 15, 2024 9:37 pm
cowdogman wrote: Wed May 15, 2024 12:24 pm After another unhelpful email and then call with Schwab this morning, I've removed all but $1,000 from the Vanguard Trad and Roth 401(k) accounts ($2,000 total) and will let them be transferred to Ascensus. If Fidelity (where we already have accounts) ever adds a 401(k) Roth option I'll move the Plan there from Ascensus. It's worth the Ascensus fees to avoid Schwab. Now I have to close the Schwab brokerage account.
What’s so bad about using Schwab?

I was contemplating rolling over all of my vanguard assets - brokerage, ira and solo401k to them. Since I’ll have a brokerage account I can do online contributions to the solo401k and they don’t have any annoying charges as far as I can see (ie ascensus annual fee) .

I have a Roth 401k component so they would be a more viable transfer partner

People say their customer service should be than vanguard ?
Schwab customer service has been excellent and if you have a brokerage account you can link that to your bank account and then use it to fund your Individual 401k. It's just that the Schwab online experience is not all there for the Individual 401k and you end up filling out and submitting a lot of forms. I imagine I'll have to fill out a form to make a withdrawal too. i went with Schwab because I might be leaving the US and they actually have reasonable expat services and are trying to make it possible for US expats to invest in US domiciled ETFs from Europe and the UK.
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southerndoc
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by southerndoc »

For those transferring their accounts to other brokerage firms, what address do you list for your Vanguard Individual 401(k) accounts on the transfer forms?
nun
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by nun »

cowdogman wrote: Wed May 15, 2024 9:47 am
MP123 wrote: Tue May 14, 2024 10:31 pm
HomeStretch wrote: Tue May 14, 2024 9:35 pm
cowdogman wrote: Tue May 14, 2024 6:48 pm … I'm wondering if I should rollover 100% of our current 401(k) assets to our Vanguard IRAs (we're both over 59.5 YO) and move our 401(k) to Schwab with no assets--and then make 2024 contributions when we're ready. …
Yes this works.
Yes. I'd leave a small token balance in the plan just so Schwab has something to work on, hopefully avoiding any hassles or questions about amending a zero balance plan (which I think is ok anyway).

Of course you'll need to give some thought to your 5500-EZ filing now that the plan balance will be below $250k, assuming it was above previously.

Or just terminate it if you don't need the contribution space and Backdoor Roth anymore.
Thanks both of you.

I was thinking I'd continue filing the 5500-EZ even with a balance under $250,000--just to avoid an IRS letter asking why I didn't file.

Termination is tempting (just to avoid thinking about these issues) but we're using the Roth space.

I have already done one "in service distribution" under 5.01 of the Plan in order to reduce the amount going to Schwab to about $150,000, but I think I will take the Trad account down to about $1,000 and the Roth account to zero. (One answer I got yesterday from Schwab (that I think is wrong) is that Schwab can transfer the Trad assets in kind, but that I needed to request a check for the Roth assets.) I don't see any limits under the Vanguard Plan on the number or frequency of in service distributions. Anybody disagree?
I've rolled over 99% of my solo 401k to my IRA and Schwab will only be transferring ~$1000 into the restated Individual 401k. I've asked them to liquidate the funds and I'll buy a Schwab fund, I also intend to keep filing 5500-EZ at least for this year as the balance was over $250k at the beginning of the year and I'd rather file too much than not enough.
TIAX
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by TIAX »

Don't you have to keep filing form 5500 once you hit $250,000 even if it goes below that number?
CFM300
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by CFM300 »

southerndoc wrote: Wed May 15, 2024 10:44 pm For those transferring their accounts to other brokerage firms, what address do you list for your Vanguard Individual 401(k) accounts on the transfer forms?
I put the address that was on my most recent statement.
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southerndoc
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by southerndoc »

MySolo401k.net pre-filled my Vanguard paperwork to transfer/rollover my assets. Option A is checked for direct rollover with the option to distribute all checked. For name of custodian or employer-sponsored plan (payee), my retirement trust FBO my name is listed with my trust/plan EIN and address are listed.

I'm assuming since the Solo 401(k) is now in a trust that this is still considered a direct rollover to the trustee? Since the name of my plan changed I assume that this can't be transferred directly to Fidelity.
TexasRads
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by TexasRads »

nun wrote: Wed May 15, 2024 6:36 pm FYI, just an update on my Schwab experience.

Schwab are very helpful and have great phone reps that are available 24/7 and have answered all my Individual 401k questions. The down side is that the answer is always to send me another form to fill out.

The Schwab Individual 401k experience is like stepping back 15 years. The account setup and TOA are both on forms that are either mailed or dropped off at a local Schwab office. The processing of the forms is fast and two days after I dropped them off I had a welcome email. However, I needed to call Schwab again to get a temporary password for the account. Now I can see my account, but to fund it I need to fill out a TOA paper form as they can't do the TOA online and a change of beneficiaries also needs a paper form. As I don't have a Schwab regular brokerage account I'll also have to send Schwab checks to make future Individual 401k contributions. Some will call it annoying, but I'm still at the quaint stage. When it reaches annoying I'll be looking at Fidelity or just closing the thing out.
Is Schwab like this for a regular brokerage or IRA account too? Does it require extra paperwork or hassle compared to fidelity ?

Was considering rolling over my vanguard funds to either fidelity or Schwab - any suggestions from anyone on which one to go with would be appreciated

Thanks in advance !
nun
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by nun »

TexasRads wrote: Fri May 17, 2024 3:41 am
nun wrote: Wed May 15, 2024 6:36 pm FYI, just an update on my Schwab experience.

Schwab are very helpful and have great phone reps that are available 24/7 and have answered all my Individual 401k questions. The down side is that the answer is always to send me another form to fill out.

The Schwab Individual 401k experience is like stepping back 15 years. The account setup and TOA are both on forms that are either mailed or dropped off at a local Schwab office. The processing of the forms is fast and two days after I dropped them off I had a welcome email. However, I needed to call Schwab again to get a temporary password for the account. Now I can see my account, but to fund it I need to fill out a TOA paper form as they can't do the TOA online and a change of beneficiaries also needs a paper form. As I don't have a Schwab regular brokerage account I'll also have to send Schwab checks to make future Individual 401k contributions. Some will call it annoying, but I'm still at the quaint stage. When it reaches annoying I'll be looking at Fidelity or just closing the thing out.
Is Schwab like this for a regular brokerage or IRA account too? Does it require extra paperwork or hassle compared to fidelity ?

Was considering rolling over my vanguard funds to either fidelity or Schwab - any suggestions from anyone on which one to go with would be appreciated

Thanks in advance !
I think the paper forms are mostly just for the Individual 401k as it isn't well integrated into their platform. For regular brokerage and IRAs etc their online tools are similar to Vanguard and Fidelity. Also their offices are convenient and everyone was very helpful. That's something that Vanguard just don't offer.
nun
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by nun »

TIAX wrote: Thu May 16, 2024 9:39 pm Don't you have to keep filing form 5500 once you hit $250,000 even if it goes below that number?
That's the question I was asking myself. The 5500-EZ instructions say

"Who Does Not Have To File Form 5500-EZ

You do not have to file Form 5500-EZ for the 2023 plan year for a
one-participant plan if the total of the plan’s assets and the assets
of all other one-participant plans maintained by the employer at
the end of the 2023 plan year does not exceed $250,000, unless
2023 is the final plan year of the plan."

So on that basis, as I rolled over most of my solo 401k assets to my IRA and the solo 401k balance is now ~$1000 I won't have to
file a 5500-EZ for 2024, but It's trivial to do online for a single participant plan using 5500-EZ so I'll probably still do it just for my own records.
toddthebod
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by toddthebod »

nun wrote: Fri May 17, 2024 7:57 am
TIAX wrote: Thu May 16, 2024 9:39 pm Don't you have to keep filing form 5500 once you hit $250,000 even if it goes below that number?
That's the question I was asking myself. The 5500-EZ instructions say

"Who Does Not Have To File Form 5500-EZ

You do not have to file Form 5500-EZ for the 2023 plan year for a
one-participant plan if the total of the plan’s assets and the assets
of all other one-participant plans maintained by the employer at
the end of the 2023 plan year does not exceed $250,000, unless
2023 is the final plan year of the plan."

So on that basis, as I rolled over most of my solo 401k assets to my IRA and the solo 401k balance is now ~$1000 I won't have to
file a 5500-EZ for 2024, but It's trivial to do online for a single participant plan using 5500-EZ so I'll probably still do it just for my own records.
You do not have to keep filing it, but people have posted on here about getting letters from the IRS when they stop. Perhaps it is worth filing one more to show an end of year balance below the threshold?
earflop
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by earflop »

nun wrote: Wed May 15, 2024 6:36 pm Now I can see my account, but to fund it I need to fill out a TOA paper form as they can't do the TOA online
For what it's worth I was able to do the TOA online by filling out the form (https://client.schwab.com/secure/file/P-221972) and then submitting it online via secure messaging.

I submitted both forms (Roth + Traditional) on 5/8. The Roth balance appeared at Schwab on 5/15 and the Traditional balance is still in progress.

Once this is all done I intend to try to fund the account with a transfer from Brokerage. I'll report back here if that works.
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by cowdogman »

TexasRads wrote: Wed May 15, 2024 9:37 pm What’s so bad about using Schwab?

...

People say their customer service should be than vanguard ?
The problem I have had with Schwab is the when you call the number for small business retirement plans the call seems to be routed to some Schwab account rep at a branch somewhere, who has no experience with individual 401(k)s. I've been told more than once that I don't need to transfer my 401(k) plan--I can just set up a new one--which is wrong.

Regarding transfer of assets I have been told:

1. I can do it online.

2. I fill out the transfer of assets form (for both Trad and Roth) and upload it on Schwab.com.

3. I fill out the transfer of assets form for Trad but I have to liquidate and request a check from Vanguard for Roth ("and make sure you have Vanguard put your Schwab Roth IRA account number on the check"). My IRA account number?

And when I tried to figure out which was the right method, I was told (again) that I should just set up a new 401(k) at Schwab. At that point I gave up.

At Vanguard I have a Flagship rep who is helpful and the small business reps are often helpful (sometimes not), but I don'[t get some random guy (it's always been a guy) at a Schwab branch somewhere answering the phone.

Plus now since we set up the brokerage account to facilitate the 401(k) transfer my wife and I have been getting sales calls from Schwab reps at our local branch.

So, not a great experience compared to Vanguard. And it made me realize I would probably be better off with Ascensus (at least until Fidelity offers a Roth i401(k)).

BTW my guess is that 2 above is the right method for transferring assets.

And for the various people on this thread who say "Schwab is helpful and answered all my questions," I have to wonder "but were the answers correct?"
profet
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by profet »

nun wrote: Fri May 17, 2024 7:25 am
TexasRads wrote: Fri May 17, 2024 3:41 am
nun wrote: Wed May 15, 2024 6:36 pm FYI, just an update on my Schwab experience.

Schwab are very helpful and have great phone reps that are available 24/7 and have answered all my Individual 401k questions. The down side is that the answer is always to send me another form to fill out.

The Schwab Individual 401k experience is like stepping back 15 years. The account setup and TOA are both on forms that are either mailed or dropped off at a local Schwab office. The processing of the forms is fast and two days after I dropped them off I had a welcome email. However, I needed to call Schwab again to get a temporary password for the account. Now I can see my account, but to fund it I need to fill out a TOA paper form as they can't do the TOA online and a change of beneficiaries also needs a paper form. As I don't have a Schwab regular brokerage account I'll also have to send Schwab checks to make future Individual 401k contributions. Some will call it annoying, but I'm still at the quaint stage. When it reaches annoying I'll be looking at Fidelity or just closing the thing out.
Is Schwab like this for a regular brokerage or IRA account too? Does it require extra paperwork or hassle compared to fidelity ?

Was considering rolling over my vanguard funds to either fidelity or Schwab - any suggestions from anyone on which one to go with would be appreciated

Thanks in advance !
I think the paper forms are mostly just for the Individual 401k as it isn't well integrated into their platform. For regular brokerage and IRAs etc their online tools are similar to Vanguard and Fidelity. Also their offices are convenient and everyone was very helpful. That's something that Vanguard just don't offer.
Schwab also answers the phone with a human after navigating a very short phone tree.

Vanguard is always 30min+ of hold times these days.
profet
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by profet »

earflop wrote: Fri May 17, 2024 8:46 am
nun wrote: Wed May 15, 2024 6:36 pm Now I can see my account, but to fund it I need to fill out a TOA paper form as they can't do the TOA online
For what it's worth I was able to do the TOA online by filling out the form (https://client.schwab.com/secure/file/P-221972) and then submitting it online via secure messaging.

I submitted both forms (Roth + Traditional) on 5/8. The Roth balance appeared at Schwab on 5/15 and the Traditional balance is still in progress.

Once this is all done I intend to try to fund the account with a transfer from Brokerage. I'll report back here if that works.
I think we're on the similar timelines.

Submitted TOA via secure messaging on 05/10 separately for both Roth and Traditional. Roth appeared in my account on 05/15. I'm still waiting for traditional.

What's interesting is that the traditional was marked as "unsuccessful." So I called Schwab and they looked into it and said that it was successful, and they have the funds, but their "mutual fund team hadn't yet picked it up." Whatever that means. They said they didn't need more info from me and it should be completed within the next 6 business days.
earflop
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by earflop »

profet wrote: Fri May 17, 2024 10:14 am What's interesting is that the traditional was marked as "unsuccessful."
I experienced the same thing with both of my transfers. Both were initially marked "unsuccessful." But I did not take any action and they both went in-progress again and eventually the Roth transfer went through. My guess is that Vanguard wanted some additional information and Schwab provided it without any input from me.
Wrench
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by Wrench »

profet wrote: Fri May 17, 2024 10:10 am
nun wrote: Fri May 17, 2024 7:25 am
TexasRads wrote: Fri May 17, 2024 3:41 am
nun wrote: Wed May 15, 2024 6:36 pm FYI, just an update on my Schwab experience.

Schwab are very helpful and have great phone reps that are available 24/7 and have answered all my Individual 401k questions. The down side is that the answer is always to send me another form to fill out.

The Schwab Individual 401k experience is like stepping back 15 years. The account setup and TOA are both on forms that are either mailed or dropped off at a local Schwab office. The processing of the forms is fast and two days after I dropped them off I had a welcome email. However, I needed to call Schwab again to get a temporary password for the account. Now I can see my account, but to fund it I need to fill out a TOA paper form as they can't do the TOA online and a change of beneficiaries also needs a paper form. As I don't have a Schwab regular brokerage account I'll also have to send Schwab checks to make future Individual 401k contributions. Some will call it annoying, but I'm still at the quaint stage. When it reaches annoying I'll be looking at Fidelity or just closing the thing out.
Is Schwab like this for a regular brokerage or IRA account too? Does it require extra paperwork or hassle compared to fidelity ?

Was considering rolling over my vanguard funds to either fidelity or Schwab - any suggestions from anyone on which one to go with would be appreciated

Thanks in advance !
I think the paper forms are mostly just for the Individual 401k as it isn't well integrated into their platform. For regular brokerage and IRAs etc their online tools are similar to Vanguard and Fidelity. Also their offices are convenient and everyone was very helpful. That's something that Vanguard just don't offer.
Schwab also answers the phone with a human after navigating a very short phone tree.

Vanguard is always 30min+ of hold times these days.
I have had to call Vanguard about 6 times over the last week or so relative to my i401k. After navigating the phone tree, which takes a minute or two, my call has been answered every time in < 2 minutes. And the person was very knowledgeable and able to help me quickly. Odd that you have to wait and I don't...
CFM300
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by CFM300 »

TexasRads wrote: Fri May 17, 2024 3:41 am fidelity or Schwab - any suggestions from anyone on which one to go with would be appreciated
I'm moving my 401(k) to Fidelity, because I already have an HSA there and I don't need a Roth subaccount.

Fidelity requires a lot of paperwork as well. I had to download, print, sign, scan, and then return by secure message, three pdfs: account application, plan adoption agreement, and trust agreement. I also had to upload and send a recent statement from my Vanguard 401(k). I did all of that several days ago. Today they acknowledged that everything was in order, and that my transfer request from Vanguard would be initiated around the 22nd, and then completed within 4 to 14 days.

I had to call for help several times. Was always connected to a friendly, professional rep quickly.
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cowdogman
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by cowdogman »

Wrench wrote: Fri May 17, 2024 2:06 pm I have had to call Vanguard about 6 times over the last week or so relative to my i401k. After navigating the phone tree, which takes a minute or two, my call has been answered every time in < 2 minutes. And the person was very knowledgeable and able to help me quickly. Odd that you have to wait and I don't...
I'm pretty certain there is an inverse correlation between wait times and how much money the caller has at Vanguard.
bernoulli
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by bernoulli »

Has anyone used Fidelity's online process to open the solo 401k? I was sent to a "customer vault" where I electronically filled out the forms and signed. What happens after that? Will I see the 401K account in my personal account when I log in?
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cowdogman
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by cowdogman »

bernoulli wrote: Fri May 17, 2024 9:07 pm Has anyone used Fidelity's online process to open the solo 401k? I was sent to a "customer vault" where I electronically filled out the forms and signed. What happens after that? Will I see the 401K account in my personal account when I log in?
I don’t know how you filled out the form but you don’t want to create a new plan if you have a plan at Vanguard. You want to transfer the Vanguard plan to Fidelity and have Fidelity amend and restate the plan in Fidelity’s form. Maybe that’s what you did??
bernoulli
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by bernoulli »

cowdogman wrote: Fri May 17, 2024 9:32 pm
bernoulli wrote: Fri May 17, 2024 9:07 pm Has anyone used Fidelity's online process to open the solo 401k? I was sent to a "customer vault" where I electronically filled out the forms and signed. What happens after that? Will I see the 401K account in my personal account when I log in?
I don’t know how you filled out the form but you don’t want to create a new plan if you have a plan at Vanguard. You want to transfer the Vanguard plan to Fidelity and have Fidelity amend and restate the plan in Fidelity’s form. Maybe that’s what you did??
I specifically checked the "amend" plan box.
CFM300
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by CFM300 »

bernoulli wrote: Fri May 17, 2024 9:07 pm Has anyone used Fidelity's online process to open the solo 401k? I was sent to a "customer vault" where I electronically filled out the forms and signed.
I was told that there were no online forms for amending and transferring a self-employed 401(k). As I described above, I had to download pdfs, print, sign, scan, and return by attaching to a secure message.
bernoulli
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by bernoulli »

CFM300 wrote: Sat May 18, 2024 10:04 am
bernoulli wrote: Fri May 17, 2024 9:07 pm Has anyone used Fidelity's online process to open the solo 401k? I was sent to a "customer vault" where I electronically filled out the forms and signed.
I was told that there were no online forms for amending and transferring a self-employed 401(k). As I described above, I had to download pdfs, print, sign, scan, and return by attaching to a secure message.
Thank you for sharing your experience. May I also ask if you needed a medallion signature?
Atticus713
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by Atticus713 »

Dear Forum,
Here is the process I utilized for transferring an "Individual 401(k)" from Vanguard to Fidelity as a "Self-employed 401(k)" (those are their respective "in house" names for a Solo 401k). The technical description for this process is that it is an "Amendment" and then a "Transfer of Assets". Following these steps led to a successful transfer. Timeline: I initiated Step 1 on 5-2-24 and the Vanguard Funds landed in the new Fidelity SE 401k account on 5-17-24. Due to inconsistent instructions over the phone from both Vanguard and Fidelity, I made mistakes along the way and needed to make corrections to some of the forms. However, if you are able to take advantage what I learned from my mistakes and use the corrected process/instructions detailed below, your timeline should hopefully be even faster.

Note: Customer Service Numbers at Fidelity:
For steps 1-3: 1-800-544-5373 “Retirement Specialists Team”
For steps 4-8: 1-800-343-3548 “Investment Solutions Team”

Step 1: Go to:
https://www.fidelity.com/retirement-ira ... k/overview
Note: you will NOT click on the Green Box that says “Open a self-employed 401(k)”

Step 2: Scroll down to Number 2, where it says:
“Review, download, complete, return to Fidelity, and keep a copy for your records the following forms:”

Step 3: A. Complete the three forms online (specific instructions for each form below)
B. Print them
C. Sign them
D. Mail to Fidelity (address bottom of form) OR drop off to Fidelity Branch Office.

Specific instructions for each form:
i) Self-employed 401(k) adopting agreement (PDF)
1. Plan Information (Use the current exact plan name. For plan number, use the current 3 digit sequence number of the account you have at Vanguard, mine was 001). For Step 1E "Plan Status and Effective Date" check the box in front of 2. Amendment Effective Date and I was told to use date: 01-01-2024. Then check the box in front of "b. an amendment and restatement..." and enter your Vanguard Plan's original effective date. By the way, for all the other questions, I chose the least restrictive options in terms of requirements to be eligible as an employee for the plan. It's just the one person on the plan--my husband.

ii) Trust agreement (PDF) (self explanatory)

iii) Self-employed 401(k) account application for yourself and each participating owner (including the business owner's spouse, if applicable).
For 1. Retirement Plan Information, check “Establish a new SE 401(k) Plan account”. This might seem counter to what we’ve said so far that this is an amendment and not a new plan. However, this document stays internal to Fidelity and directs them to open the retirement plan within Fidelity; the rest of the form is self explanatory.

Step 4: On 5-3-24 we dropped off the 3 completed and signed forms to a Fidelity Branch Office. We explained what we were doing and the desk person uploaded the documents while we waited about 15 minutes. We could have mailed them in regular mail or used an overnight mail address (those addresses were at the end of the 3 forms) but chose this route since a Fidelity Branch Office is only 30 min from where we live. Within hours, we received an email that an account had been set up. In that email there was a link for “View Account Records”. We clicked on that which allowed me to see a login page where I scrolled to the bottom to where it says: “New to Fidelity? Open an account or sign up." Click on “Sign Up” so you can choose a UserName and Password. Then Sign In to your account.

Step 5: On your home page, go to the search bubble at top right corner and write “forms” and click the drop down bubble below it that says “Online Forms and Applications” then click the link where it says “All Forms”. Then on left where it says “Choose Tasks”, scroll down to where it says “Transfer money/assets INTO an account”. Then click “page 2" and scroll down alphabetically until you see “Transfer of Assets” on left side. Click that link. Then click “Download the PDF”.
NOTE: Do NOT Click “Complete Online” as this stage of the process will not work online!

Step 6: Complete the “Transfer of Assets” Form. Specific Instructions:
1. Fidelity Account Information: Fill in the Self Employment Account number you recently created (It’s listed on your home page on the Fidelity website. Go to “Accounts & Trade” at the top and choose “Portfolio” from the drop-down menu. You will see a 9 digit number listed under “Self Employed 401K”). Do NOT check the box where it says “New Fidelity account” (you’ve already created your account). Under the two columns of boxes where it says “Fidelity Account Type”, check “Other” and write in “Self Employed 401K”.
2. Account Being Transferred. For “Account Number” use the 8 digit Plan ID of the Individual 401k from Vanguard. I called Vanguard to get the address and phone number to use in the subsequent boxes. The Transferring Firm Address is: PO Box 982901, El Paso, TX 79998-2901, Phone: 855-730-0325 (no dashes). “Under Transferring Firm Account Type”, check “Other” and write in “Individual (Solo) 401k”
3. Transfer Instructions: B. Mutual Fund Company Account Transfer (for me they were “VTSAX 0585-xxxxxxxxxxx” and “VBTLX 0584-xxxxxxxxxxx”). To find those account numbers, log into your account on Vanguard's website: next to each fund symbol (i.e. VTSAX) there will be a 4 digit prefix, dash, then an 11 digit number.) Next, for “Number of Shares” I wrote “All” and checked the “In Kind” box below each of the two entries.
4. Signatures and Dates: Print and Sign

Step 7: Upload the Form using their secure message center. First, go to your home page under Portfolio. Look on the top right corner and click on “Messages”. On the right hand side under “Related Links” click on “Other ways to contact us”. Scroll down to near the right hand bottom of the page where you then click on the link: “Send a secure message”. Under “Subject”, write: “Transfer of Assets from Vanguard Individual 401K to Fidelity Self Employed 401K”. Under “Send email to” choose “Account Services” from the dropdown menu. Under “Account” choose the dropdown “Self Employed 401K”. Attach the Completed and signed Transfer of Assets Form along with your most recent Vanguard Quarterly Statement. Click “Send email”.

Step 8: It then took about a week for Fidelity to contact Vanguard and Vanguard to send the Funds to Fidelity. You can track the process and see if you need to take any corrective actions by logging into your Fidelity account and going to the search bar on the right upper part of the screen. Start to type "Status Tracker" and you'll see a bubble below the search bar with a quick link to the "Status Tracker". We received an email from Vanguard when they transferred the funds. I then logged into the Fidelity account and verified that the two Vanguard funds were there in the appropriate amounts. I will next exchange these funds for the equivalent Fidelity Funds (since the Fidelity ER's are lower for their equivalent funds. In addition, our future contributions will then also be in those same two Fidelity funds and we'll again be in a two-fund portfolio, which we personally prefer). Again, the folks at Fidelity at 1-800-343-3548 “Investment Solutions Team” will help you with any questions on how to do this.

I hope this has been helpful!
Best of luck,
Atticus713
“Simplicity is the master key to financial success” J.C. Bogle | Total U.S. Stock (or S&P 500) Index + Total U.S. Bond Index | Age-10 in Bonds | Rebalance Annually | Stay the Course
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etc
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by etc »

Not sure if this applies to me or not. Just a basic question about my Vanguard Roll Over IRA account is being sold or not.

I have a Vanguard Roll Over IRA account, which were 401K plans at previous employers. All of it is 401K and not Roth. I've logged onto the Vanguard site a few times the past 2 days or so to see if my account was sold to Ascensus. I see no updates yet that my Vanguard account was sold to Ascensus.

I am assuming my account will remain at Vanguard or are they selling them in batches? Just curious if I misread something or got some details wrong.

Thanks, in advance.
CFM300
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by CFM300 »

bernoulli wrote: Sat May 18, 2024 10:43 am May I also ask if you needed a medallion signature?
No medallion signature or notary seal required. Just my own signature.

I hope your online applications go through without a problem. Maybe Fidelity has created a new system due to an influx of applications because of Vanguard's exit?
znpzPWFmYYIBlD4siQup
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by znpzPWFmYYIBlD4siQup »

Atticus713 wrote: Sat May 18, 2024 12:41 pm Dear Forum,
Here is the process I utilized for transferring an "Individual 401(k)" from Vanguard to Fidelity as a "Self-employed 401(k)" (those are their respective "in house" names for a Solo 401k). The technical description for this process is that it is an "Amendment" and then a "Transfer of Assets". Following these steps led to a successful transfer. Timeline: I initiated Step 1 on 5-2-24 and the Vanguard Funds landed in the new Fidelity SE 401k account on 5-17-24. Due to inconsistent instructions over the phone from both Vanguard and Fidelity, I made mistakes along the way and needed to make corrections to some of the forms. However, if you are able to take advantage what I learned from my mistakes and use the corrected process/instructions detailed below, your timeline should hopefully be even faster.

Note: Customer Service Numbers at Fidelity:
For steps 1-3: 1-800-544-5373 “Retirement Specialists Team”
For steps 4-8: 1-800-343-3548 “Investment Solutions Team”

Step 1: Go to:
https://www.fidelity.com/retirement-ira ... k/overview
Note: you will NOT click on the Green Box that says “Open a self-employed 401(k)”

Step 2: Scroll down to Number 2, where it says:
“Review, download, complete, return to Fidelity, and keep a copy for your records the following forms:”

Step 3: A. Complete the three forms online (specific instructions for each form below)
B. Print them
C. Sign them
D. Mail to Fidelity (address bottom of form) OR drop off to Fidelity Branch Office.

Specific instructions for each form:
i) Self-employed 401(k) adopting agreement (PDF)
1. Plan Information (Use the current exact plan name. For plan number, use the current 3 digit sequence number of the account you have at Vanguard, mine was 001). For Step 1E "Plan Status and Effective Date" check the box in front of 2. Amendment Effective Date and I was told to use date: 01-01-2024. Then check the box in front of "b. an amendment and restatement..." and enter your Vanguard Plan's original effective date. By the way, for all the other questions, I chose the least restrictive options in terms of requirements to be eligible as an employee for the plan. It's just the one person on the plan--my husband.

ii) Trust agreement (PDF) (self explanatory)

iii) Self-employed 401(k) account application for yourself and each participating owner (including the business owner's spouse, if applicable).
For 1. Retirement Plan Information, check “Establish a new SE 401(k) Plan account”. This might seem counter to what we’ve said so far that this is an amendment and not a new plan. However, this document stays internal to Fidelity and directs them to open the retirement plan within Fidelity; the rest of the form is self explanatory.

Step 4: On 5-3-24 we dropped off the 3 completed and signed forms to a Fidelity Branch Office. We explained what we were doing and the desk person uploaded the documents while we waited about 15 minutes. We could have mailed them in regular mail or used an overnight mail address (those addresses were at the end of the 3 forms) but chose this route since a Fidelity Branch Office is only 30 min from where we live. Within hours, we received an email that an account had been set up. In that email there was a link for “View Account Records”. We clicked on that which allowed me to see a login page where I scrolled to the bottom to where it says: “New to Fidelity? Open an account or sign up." Click on “Sign Up” so you can choose a UserName and Password. Then Sign In to your account.

Step 5: On your home page, go to the search bubble at top right corner and write “forms” and click the drop down bubble below it that says “Online Forms and Applications” then click the link where it says “All Forms”. Then on left where it says “Choose Tasks”, scroll down to where it says “Transfer money/assets INTO an account”. Then click “page 2" and scroll down alphabetically until you see “Transfer of Assets” on left side. Click that link. Then click “Download the PDF”.
NOTE: Do NOT Click “Complete Online” as this stage of the process will not work online!

Step 6: Complete the “Transfer of Assets” Form. Specific Instructions:
1. Fidelity Account Information: Fill in the Self Employment Account number you recently created (It’s listed on your home page on the Fidelity website. Go to “Accounts & Trade” at the top and choose “Portfolio” from the drop-down menu. You will see a 9 digit number listed under “Self Employed 401K”). Do NOT check the box where it says “New Fidelity account” (you’ve already created your account). Under the two columns of boxes where it says “Fidelity Account Type”, check “Other” and write in “Self Employed 401K”.
2. Account Being Transferred. For “Account Number” use the 8 digit Plan ID of the Individual 401k from Vanguard. I called Vanguard to get the address and phone number to use in the subsequent boxes. The Transferring Firm Address is: PO Box 982901, El Paso, TX 79998-2901, Phone: 855-730-0325 (no dashes). “Under Transferring Firm Account Type”, check “Other” and write in “Individual (Solo) 401k”
3. Transfer Instructions: B. Mutual Fund Company Account Transfer (for me they were “VTSAX 0585-xxxxxxxxxxx” and “VBTLX 0584-xxxxxxxxxxx”). To find those account numbers, log into your account on Vanguard's website: next to each fund symbol (i.e. VTSAX) there will be a 4 digit prefix, dash, then an 11 digit number.) Next, for “Number of Shares” I wrote “All” and checked the “In Kind” box below each of the two entries.
4. Signatures and Dates: Print and Sign

Step 7: Upload the Form using their secure message center. First, go to your home page under Portfolio. Look on the top right corner and click on “Messages”. On the right hand side under “Related Links” click on “Other ways to contact us”. Scroll down to near the right hand bottom of the page where you then click on the link: “Send a secure message”. Under “Subject”, write: “Transfer of Assets from Vanguard Individual 401K to Fidelity Self Employed 401K”. Under “Send email to” choose “Account Services” from the dropdown menu. Under “Account” choose the dropdown “Self Employed 401K”. Attach the Completed and signed Transfer of Assets Form along with your most recent Vanguard Quarterly Statement. Click “Send email”.

Step 8: It then took about a week for Fidelity to contact Vanguard and Vanguard to send the Funds to Fidelity. You can track the process and see if you need to take any corrective actions by logging into your Fidelity account and going to the search bar on the right upper part of the screen. Start to type "Status Tracker" and you'll see a bubble below the search bar with a quick link to the "Status Tracker". We received an email from Vanguard when they transferred the funds. I then logged into the Fidelity account and verified that the two Vanguard funds were there in the appropriate amounts. I will next exchange these funds for the equivalent Fidelity Funds (since the Fidelity ER's are lower for their equivalent funds. In addition, our future contributions will then also be in those same two Fidelity funds and we'll again be in a two-fund portfolio, which we personally prefer). Again, the folks at Fidelity at 1-800-343-3548 “Investment Solutions Team” will help you with any questions on how to do this.

I hope this has been helpful!
Best of luck,
Atticus713
Great detailed info! This was essentially my experience transferring Vanguard solo-401K to Fidelity Self-Employed 401k (started first weekend of May). I was able to set up the Fidelity 401K account online. That was available right away. The TOA process was done by filling out the PDFs and sending by secure email portal. didn't even bother to put Vanguard address (figured that Fidelity would know that), just Vanguard in the "Transferring Firm Name" and left the other info blank (Address, City, State, Zip, Phone). I did include in TOA attachment my latest Vanguard statement of the account (from Q1 end). Last week, 2 of the Vanguard funds transferred over (Core Bond and UltraShortTerm). I'm still waiting for the other two (Wellington and Wellesley) to transfer over. Fidelity tracker has estimated that it should be completed by end of May. It's only a small amount from 2023, I'll sell and get Fidelity fund(s) once everything is finished. Fidelity phone help was excellent (from the retirement department) to guide me through the TOA process (picked up within 1 minute on a Monday morning at 8:30AM).
znpzPWFmYYIBlD4siQup
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by znpzPWFmYYIBlD4siQup »

znpzPWFmYYIBlD4siQup wrote: Tue May 07, 2024 10:09 am
Ret2018 wrote: Sun May 05, 2024 8:12 am
znpzPWFmYYIBlD4siQup wrote: Sat May 04, 2024 11:37 pm I setup a rollover IRA this afternoon, but I don't see any way to initiate a rollover from within Vanguard to this new account. All the links on website are for external transfer from other company, or non-retirement account transfer. Am I missing something that should be so easy? If anyone has done this before, please let me know. Otherwise, I'll be calling Vanguard on Monday morning which often is the best way to get something done at Vanguard. Also, if someone knows, do they rollover in kind (keep all the funds)? I know they did this for my SIMPLEs to SEP rollover.
1) To find the form you need:
-"Documents & statements" icon in the upper right hand corner, then choose
-"Forms & applications"
-then search on the term "remove money"
-click on "Remove Money From Your Retirement or Nonretirement Account
Use this process to sell full or partial shares of your retirement or nonretirement account. (i.e. SEP, SIMPLE, Trad, Rollover, Roth, i401k, Individual, Joint, Trust, Org). Please allow 1-3 business days for processing after we receive your form."

2) When I transferred from Vanguard SEP IRA to Vanguard tIRA (and then closed the SEP IRA), it was an "in kind" transfer of assets.
Thanks. I went through that, but got stuck after creating a new Rollover brokerage IRA account. I called Vanguard Monday morning and just asked them to move the SEP-IRA (which they told me was not going to move to Acc) to the rollover account. Everything should be moved in-kind and I received some type of account change confirmation email this morning.
Update on this: It took about 2 weeks, but the final fund was just transferred to the rollover brokerage IRA account this morning, so the SEP-IRA is now empty. Looks like they moved several funds every few days. Didn't want to take the chance that Vanguard would get rid of this type of account since they've sold off all the other ones so now I don't need to worry. Not even sure what the difference between the SEP-IRA I had with Vanguard and a multi-participant SEP-IRA is. We definitely had more than 1 person in the original plan.
GoldenBear17
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by GoldenBear17 »

GammaPoint wrote: Sat May 04, 2024 10:39 am For those of you planning on taking the $1500 tax credit for auto-enrollment, how do you plan on actually capturing that on your return? Are you going to file taxes manually or with a CPA doing it for you? A quick google search suggests it _may_ not be trivial to do with standard tax software. While the $500/year credit is enticing to me, that'll get completely eaten up in either costs or annoyance if I need to do something highly custom when filing taxes.
I wanted to bring back up this post because this is becoming a factor in my decision. I would strongly consider MySolo401k.net due to the $1500 auto-enrollment credit. However, I went into TurboTax to see if I could claim this credit using Part II of Form 8881 and it simply won't work for a sole proprietor, at least at this time. It seems like it may let you fill out Part 1 of Form 8881 for the startup credit, but not just Part 2 where you claim the auto-enrollment credit. (Form 8881 flows into Form 3800 and I can manually go to Form 3800 and fill in the information there. But I can't get Form 8881 to work to claim this credit and flow it into Form 3800.)

I saw some posts elsewhere reaffirming that this isn't working on TurboTax as of the recent version if I had been doing it for 2023 taxes:

https://mysolo401k.net/mycommunity/foru ... -c-filers/

https://ttlc.intuit.com/community/tax-c ... 00/3246643

https://ttlc.intuit.com/community/busin ... 00/3265087

Can anyone share how they are claiming or plan to claim this credit? Do you have to hire a tax preparer to do it? I would already pay more money having to pay to file with TurboTax instead of using my usual service which can't do Form 8881 at all. That might still be worth it to me to do. But if TurboTax can't even file this auto-enrollment credit correctly, then I'm really not sure what to do and if it will make MySolo401k no longer a good deal for me. (It's questionable with their fees if it's worth it to me. But with the auto-enrollment credit offsetting the costs it becomes possibly a very good choice, as long as tax software and/or other costs don't eat away into the credit too much.)

I guess one option which was mentioned earlier in this mega-thread is to do everything else on TurboTax, then manually do Form 8881 and print it all out and mail it in. That sounds like a huge hassle and I would be concerned mailing in my taxes rather than e-filing and getting confirmation of everything.
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southerndoc
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by southerndoc »

I have the TOA forms to transfer to my Fidelity non-prototype accounts (using mysolo401k.net). I was told the get a Medallion Signature Guarantee because the name changed from my full name to last name Retirement Trust. The trustee/participant is only me, so that has stayed the same.

I thought the Vanguard account number was the number after the fund (i.e., 0590-xxxxxx). Is there another number indicating account number?

Do we know when Vanguard will stop transfers before moving everything to Ascensus? I definitely want that to happen before they make the move.

Finally, how did you close the accounts at Vanguard without Vanguard saying you've terminated the plan?
nun
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by nun »

GoldenBear17 wrote: Sat May 18, 2024 3:30 pm
GammaPoint wrote: Sat May 04, 2024 10:39 am For those of you planning on taking the $1500 tax credit for auto-enrollment, how do you plan on actually capturing that on your return? Are you going to file taxes manually or with a CPA doing it for you? A quick google search suggests it _may_ not be trivial to do with standard tax software. While the $500/year credit is enticing to me, that'll get completely eaten up in either costs or annoyance if I need to do something highly custom when filing taxes.
I wanted to bring back up this post because this is becoming a factor in my decision. I would strongly consider MySolo401k.net due to the $1500 auto-enrollment credit. However, I went into TurboTax to see if I could claim this credit using Part II of Form 8881 and it simply won't work for a sole proprietor, at least at this time. It seems like it may let you fill out Part 1 of Form 8881 for the startup credit, but not just Part 2 where you claim the auto-enrollment credit. (Form 8881 flows into Form 3800 and I can manually go to Form 3800 and fill in the information there. But I can't get Form 8881 to work to claim this credit and flow it into Form 3800.)

I saw some posts elsewhere reaffirming that this isn't working on TurboTax as of the recent version if I had been doing it for 2023 taxes:

https://mysolo401k.net/mycommunity/foru ... -c-filers/

https://ttlc.intuit.com/community/tax-c ... 00/3246643

https://ttlc.intuit.com/community/busin ... 00/3265087

Can anyone share how they are claiming or plan to claim this credit? Do you have to hire a tax preparer to do it? I would already pay more money having to pay to file with TurboTax instead of using my usual service which can't do Form 8881 at all. That might still be worth it to me to do. But if TurboTax can't even file this auto-enrollment credit correctly, then I'm really not sure what to do and if it will make MySolo401k no longer a good deal for me. (It's questionable with their fees if it's worth it to me. But with the auto-enrollment credit offsetting the costs it becomes possibly a very good choice, as long as tax software and/or other costs don't eat away into the credit too much.)

I guess one option which was mentioned earlier in this mega-thread is to do everything else on TurboTax, then manually do Form 8881 and print it all out and mail it in. That sounds like a huge hassle and I would be concerned mailing in my taxes rather than e-filing and getting confirmation of everything.
I'm probably a bit too cynical, but there were a lot of posts early in this thread pushing MySolo401k with the argument about the tax credit covering the annual fees, at least for a few years. I never like deals where the benefit hangs somewhere out in the future, but I'll definitely be on the hook for hundreds of dollars in fees for sure. MySolo401k does not strike me as something that a fee conscious Boglehead would choose. Their services don't seem worth the fees to me as 1099-Rs are produced by Vanguard, Schwab, Fidelity etc for free and the 5500-EZ is trivial to file electronically. I had to do a bit of work to amend my Vanguard solo 401k to Schwab, but I've leaned a few things and mu costs will be very low. Fidelity or Schwab seem like the engaged, low fee loving, Boglehead options.
znpzPWFmYYIBlD4siQup
Posts: 11
Joined: Thu Apr 25, 2024 12:27 pm

Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by znpzPWFmYYIBlD4siQup »

nun wrote: Sat May 18, 2024 4:45 pm
GoldenBear17 wrote: Sat May 18, 2024 3:30 pm
GammaPoint wrote: Sat May 04, 2024 10:39 am For those of you planning on taking the $1500 tax credit for auto-enrollment, how do you plan on actually capturing that on your return? Are you going to file taxes manually or with a CPA doing it for you? A quick google search suggests it _may_ not be trivial to do with standard tax software. While the $500/year credit is enticing to me, that'll get completely eaten up in either costs or annoyance if I need to do something highly custom when filing taxes.
I wanted to bring back up this post because this is becoming a factor in my decision. I would strongly consider MySolo401k.net due to the $1500 auto-enrollment credit. However, I went into TurboTax to see if I could claim this credit using Part II of Form 8881 and it simply won't work for a sole proprietor, at least at this time. It seems like it may let you fill out Part 1 of Form 8881 for the startup credit, but not just Part 2 where you claim the auto-enrollment credit. (Form 8881 flows into Form 3800 and I can manually go to Form 3800 and fill in the information there. But I can't get Form 8881 to work to claim this credit and flow it into Form 3800.)

I saw some posts elsewhere reaffirming that this isn't working on TurboTax as of the recent version if I had been doing it for 2023 taxes:

https://mysolo401k.net/mycommunity/foru ... -c-filers/

https://ttlc.intuit.com/community/tax-c ... 00/3246643

https://ttlc.intuit.com/community/busin ... 00/3265087

Can anyone share how they are claiming or plan to claim this credit? Do you have to hire a tax preparer to do it? I would already pay more money having to pay to file with TurboTax instead of using my usual service which can't do Form 8881 at all. That might still be worth it to me to do. But if TurboTax can't even file this auto-enrollment credit correctly, then I'm really not sure what to do and if it will make MySolo401k no longer a good deal for me. (It's questionable with their fees if it's worth it to me. But with the auto-enrollment credit offsetting the costs it becomes possibly a very good choice, as long as tax software and/or other costs don't eat away into the credit too much.)

I guess one option which was mentioned earlier in this mega-thread is to do everything else on TurboTax, then manually do Form 8881 and print it all out and mail it in. That sounds like a huge hassle and I would be concerned mailing in my taxes rather than e-filing and getting confirmation of everything.
I'm probably a bit too cynical, but there were a lot of posts early in this thread pushing MySolo401k with the argument about the tax credit covering the annual fees, at least for a few years. I never like deals where the benefit hangs somewhere out in the future, but I'll definitely be on the hook for hundreds of dollars in fees for sure. MySolo401k does not strike me as something that a fee conscious Boglehead would choose. Their services don't seem worth the fees to me as 1099-Rs are produced by Vanguard, Schwab, Fidelity etc for free and the 5500-EZ is trivial to file electronically. I had to do a bit of work to amend my Vanguard solo 401k to Schwab, but I've leaned a few things and mu costs will be very low. Fidelity or Schwab seem like the engaged, low fee loving, Boglehead options.
I think you also need to have at least 1 employee (non-owner) to get the Startup Tax Credit. I think the automatic enrollment tax credit has to start with that in the first place. Not sure how you can do it with a solo-401k for a 1-person business.
bernoulli
Posts: 156
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by bernoulli »

thank you atticus for the thorough review.
Last edited by bernoulli on Sat May 18, 2024 10:28 pm, edited 1 time in total.
GoldenBear17
Posts: 358
Joined: Sat Nov 05, 2022 12:48 am

Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by GoldenBear17 »

nun wrote: Sat May 18, 2024 4:45 pm
GoldenBear17 wrote: Sat May 18, 2024 3:30 pm
GammaPoint wrote: Sat May 04, 2024 10:39 am For those of you planning on taking the $1500 tax credit for auto-enrollment, how do you plan on actually capturing that on your return? Are you going to file taxes manually or with a CPA doing it for you? A quick google search suggests it _may_ not be trivial to do with standard tax software. While the $500/year credit is enticing to me, that'll get completely eaten up in either costs or annoyance if I need to do something highly custom when filing taxes.
I wanted to bring back up this post because this is becoming a factor in my decision. I would strongly consider MySolo401k.net due to the $1500 auto-enrollment credit. However, I went into TurboTax to see if I could claim this credit using Part II of Form 8881 and it simply won't work for a sole proprietor, at least at this time. It seems like it may let you fill out Part 1 of Form 8881 for the startup credit, but not just Part 2 where you claim the auto-enrollment credit. (Form 8881 flows into Form 3800 and I can manually go to Form 3800 and fill in the information there. But I can't get Form 8881 to work to claim this credit and flow it into Form 3800.)

I saw some posts elsewhere reaffirming that this isn't working on TurboTax as of the recent version if I had been doing it for 2023 taxes:

https://mysolo401k.net/mycommunity/foru ... -c-filers/

https://ttlc.intuit.com/community/tax-c ... 00/3246643

https://ttlc.intuit.com/community/busin ... 00/3265087

Can anyone share how they are claiming or plan to claim this credit? Do you have to hire a tax preparer to do it? I would already pay more money having to pay to file with TurboTax instead of using my usual service which can't do Form 8881 at all. That might still be worth it to me to do. But if TurboTax can't even file this auto-enrollment credit correctly, then I'm really not sure what to do and if it will make MySolo401k no longer a good deal for me. (It's questionable with their fees if it's worth it to me. But with the auto-enrollment credit offsetting the costs it becomes possibly a very good choice, as long as tax software and/or other costs don't eat away into the credit too much.)

I guess one option which was mentioned earlier in this mega-thread is to do everything else on TurboTax, then manually do Form 8881 and print it all out and mail it in. That sounds like a huge hassle and I would be concerned mailing in my taxes rather than e-filing and getting confirmation of everything.
I'm probably a bit too cynical, but there were a lot of posts early in this thread pushing MySolo401k with the argument about the tax credit covering the annual fees, at least for a few years. I never like deals where the benefit hangs somewhere out in the future, but I'll definitely be on the hook for hundreds of dollars in fees for sure. MySolo401k does not strike me as something that a fee conscious Boglehead would choose. Their services don't seem worth the fees to me as 1099-Rs are produced by Vanguard, Schwab, Fidelity etc for free and the 5500-EZ is trivial to file electronically. I had to do a bit of work to amend my Vanguard solo 401k to Schwab, but I've leaned a few things and mu costs will be very low. Fidelity or Schwab seem like the engaged, low fee loving, Boglehead options.
The main reason to do MySolo401k for me would be to be able to do Megabackdoor Roth and be able to both put more total in the Solo 401(k) a year than I can otherwise and be able to get a lot of that money into my Roth IRA where I have access to the contributions if I need them (which would then allow me to feel more comfortable with a smaller emergency fund elsewhere and thus able to invest more of my portfolio). Overall I think this might very well be worth the fees. MySolo401k is I think $650 total for the first year including setup and then $125 a year after. Even if I only got the $500 credit once and offset most of that first year fee and I had to pay $125 a year after that, I think it may very well be worth what I'd gain. If I got the other 2 years of $500 on top of that it would be a no-brainer for me...if only I can actually claim the credit.
GoldenBear17
Posts: 358
Joined: Sat Nov 05, 2022 12:48 am

Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by GoldenBear17 »

znpzPWFmYYIBlD4siQup wrote: Sat May 18, 2024 5:25 pm
nun wrote: Sat May 18, 2024 4:45 pm
GoldenBear17 wrote: Sat May 18, 2024 3:30 pm
GammaPoint wrote: Sat May 04, 2024 10:39 am For those of you planning on taking the $1500 tax credit for auto-enrollment, how do you plan on actually capturing that on your return? Are you going to file taxes manually or with a CPA doing it for you? A quick google search suggests it _may_ not be trivial to do with standard tax software. While the $500/year credit is enticing to me, that'll get completely eaten up in either costs or annoyance if I need to do something highly custom when filing taxes.
I wanted to bring back up this post because this is becoming a factor in my decision. I would strongly consider MySolo401k.net due to the $1500 auto-enrollment credit. However, I went into TurboTax to see if I could claim this credit using Part II of Form 8881 and it simply won't work for a sole proprietor, at least at this time. It seems like it may let you fill out Part 1 of Form 8881 for the startup credit, but not just Part 2 where you claim the auto-enrollment credit. (Form 8881 flows into Form 3800 and I can manually go to Form 3800 and fill in the information there. But I can't get Form 8881 to work to claim this credit and flow it into Form 3800.)

I saw some posts elsewhere reaffirming that this isn't working on TurboTax as of the recent version if I had been doing it for 2023 taxes:

https://mysolo401k.net/mycommunity/foru ... -c-filers/

https://ttlc.intuit.com/community/tax-c ... 00/3246643

https://ttlc.intuit.com/community/busin ... 00/3265087

Can anyone share how they are claiming or plan to claim this credit? Do you have to hire a tax preparer to do it? I would already pay more money having to pay to file with TurboTax instead of using my usual service which can't do Form 8881 at all. That might still be worth it to me to do. But if TurboTax can't even file this auto-enrollment credit correctly, then I'm really not sure what to do and if it will make MySolo401k no longer a good deal for me. (It's questionable with their fees if it's worth it to me. But with the auto-enrollment credit offsetting the costs it becomes possibly a very good choice, as long as tax software and/or other costs don't eat away into the credit too much.)

I guess one option which was mentioned earlier in this mega-thread is to do everything else on TurboTax, then manually do Form 8881 and print it all out and mail it in. That sounds like a huge hassle and I would be concerned mailing in my taxes rather than e-filing and getting confirmation of everything.
I'm probably a bit too cynical, but there were a lot of posts early in this thread pushing MySolo401k with the argument about the tax credit covering the annual fees, at least for a few years. I never like deals where the benefit hangs somewhere out in the future, but I'll definitely be on the hook for hundreds of dollars in fees for sure. MySolo401k does not strike me as something that a fee conscious Boglehead would choose. Their services don't seem worth the fees to me as 1099-Rs are produced by Vanguard, Schwab, Fidelity etc for free and the 5500-EZ is trivial to file electronically. I had to do a bit of work to amend my Vanguard solo 401k to Schwab, but I've leaned a few things and mu costs will be very low. Fidelity or Schwab seem like the engaged, low fee loving, Boglehead options.
I think you also need to have at least 1 employee (non-owner) to get the Startup Tax Credit. I think the automatic enrollment tax credit has to start with that in the first place. Not sure how you can do it with a solo-401k for a 1-person business.
I'm not talking about claiming the Startup credit. Only the auto-enrollment credit, which is definitely allowed for a 1-person business. MySolo401k has extensive resources on that. The entire problem here is that TurboTax doesn't seem capable of being used to claim just the auto-enrollment credit (Part II of Form 8881) which is what people like me need to do. I believe I've seen posts where people showed quite clearly in the language that qualification for the auto-enrollment credit does not have those same requirements as for the Startup credit.
toddthebod
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by toddthebod »

znpzPWFmYYIBlD4siQup wrote: Sat May 18, 2024 5:25 pm I think you also need to have at least 1 employee (non-owner) to get the Startup Tax Credit. I think the automatic enrollment tax credit has to start with that in the first place. Not sure how you can do it with a solo-401k for a 1-person business.
The two credits are independent (26 USC 45E and 26 USC 45T.) The non-owner (technically non-HCE) employee requirement is only mentioned in §45E.
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southerndoc
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by southerndoc »

nun wrote: Sat May 18, 2024 4:45 pm I'm probably a bit too cynical, but there were a lot of posts early in this thread pushing MySolo401k with the argument about the tax credit covering the annual fees, at least for a few years. I never like deals where the benefit hangs somewhere out in the future, but I'll definitely be on the hook for hundreds of dollars in fees for sure. MySolo401k does not strike me as something that a fee conscious Boglehead would choose. Their services don't seem worth the fees to me as 1099-Rs are produced by Vanguard, Schwab, Fidelity etc for free and the 5500-EZ is trivial to file electronically. I had to do a bit of work to amend my Vanguard solo 401k to Schwab, but I've leaned a few things and mu costs will be very low. Fidelity or Schwab seem like the engaged, low fee loving, Boglehead options.
It's worth it for some of the features: checkbook control (can invest in real estate), loans (in case of emergency), and they file your 5500. Yes, it's not the most fee conscious for a Boglehead but it does have added benefits for those who need/might want the features.
nun
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by nun »

GoldenBear17 wrote: Sat May 18, 2024 6:02 pm
nun wrote: Sat May 18, 2024 4:45 pm
GoldenBear17 wrote: Sat May 18, 2024 3:30 pm
GammaPoint wrote: Sat May 04, 2024 10:39 am For those of you planning on taking the $1500 tax credit for auto-enrollment, how do you plan on actually capturing that on your return? Are you going to file taxes manually or with a CPA doing it for you? A quick google search suggests it _may_ not be trivial to do with standard tax software. While the $500/year credit is enticing to me, that'll get completely eaten up in either costs or annoyance if I need to do something highly custom when filing taxes.
I wanted to bring back up this post because this is becoming a factor in my decision. I would strongly consider MySolo401k.net due to the $1500 auto-enrollment credit. However, I went into TurboTax to see if I could claim this credit using Part II of Form 8881 and it simply won't work for a sole proprietor, at least at this time. It seems like it may let you fill out Part 1 of Form 8881 for the startup credit, but not just Part 2 where you claim the auto-enrollment credit. (Form 8881 flows into Form 3800 and I can manually go to Form 3800 and fill in the information there. But I can't get Form 8881 to work to claim this credit and flow it into Form 3800.)

I saw some posts elsewhere reaffirming that this isn't working on TurboTax as of the recent version if I had been doing it for 2023 taxes:

https://mysolo401k.net/mycommunity/foru ... -c-filers/

https://ttlc.intuit.com/community/tax-c ... 00/3246643

https://ttlc.intuit.com/community/busin ... 00/3265087

Can anyone share how they are claiming or plan to claim this credit? Do you have to hire a tax preparer to do it? I would already pay more money having to pay to file with TurboTax instead of using my usual service which can't do Form 8881 at all. That might still be worth it to me to do. But if TurboTax can't even file this auto-enrollment credit correctly, then I'm really not sure what to do and if it will make MySolo401k no longer a good deal for me. (It's questionable with their fees if it's worth it to me. But with the auto-enrollment credit offsetting the costs it becomes possibly a very good choice, as long as tax software and/or other costs don't eat away into the credit too much.)

I guess one option which was mentioned earlier in this mega-thread is to do everything else on TurboTax, then manually do Form 8881 and print it all out and mail it in. That sounds like a huge hassle and I would be concerned mailing in my taxes rather than e-filing and getting confirmation of everything.
I'm probably a bit too cynical, but there were a lot of posts early in this thread pushing MySolo401k with the argument about the tax credit covering the annual fees, at least for a few years. I never like deals where the benefit hangs somewhere out in the future, but I'll definitely be on the hook for hundreds of dollars in fees for sure. MySolo401k does not strike me as something that a fee conscious Boglehead would choose. Their services don't seem worth the fees to me as 1099-Rs are produced by Vanguard, Schwab, Fidelity etc for free and the 5500-EZ is trivial to file electronically. I had to do a bit of work to amend my Vanguard solo 401k to Schwab, but I've leaned a few things and mu costs will be very low. Fidelity or Schwab seem like the engaged, low fee loving, Boglehead options.
The main reason to do MySolo401k for me would be to be able to do Megabackdoor Roth and be able to both put more total in the Solo 401(k) a year than I can otherwise and be able to get a lot of that money into my Roth IRA where I have access to the contributions if I need them (which would then allow me to feel more comfortable with a smaller emergency fund elsewhere and thus able to invest more of my portfolio). Overall I think this might very well be worth the fees. MySolo401k is I think $650 total for the first year including setup and then $125 a year after. Even if I only got the $500 credit once and offset most of that first year fee and I had to pay $125 a year after that, I think it may very well be worth what I'd gain. If I got the other 2 years of $500 on top of that it would be a no-brainer for me...if only I can actually claim the credit.
I've seen "megabackdoor ROTHs" mentioned for both Fidelity and Schwab too. It seems to me that MySolo401k are good at marketing features that are available at a lot of other providers.
toddthebod
Posts: 6473
Joined: Wed May 18, 2022 12:42 pm

Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by toddthebod »

nun wrote: Sat May 18, 2024 6:18 pm I've seen "megabackdoor ROTHs" mentioned for both Fidelity and Schwab too. It seems to me that MySolo401k are good at marketing features that are available at a lot of other providers.
Neither FIdelity nor Schwab permit a Mega Backdoor Roth in their solo 401(k) plans.
GoldenBear17
Posts: 358
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by GoldenBear17 »

nun wrote: Sat May 18, 2024 6:18 pm
GoldenBear17 wrote: Sat May 18, 2024 6:02 pm
nun wrote: Sat May 18, 2024 4:45 pm
GoldenBear17 wrote: Sat May 18, 2024 3:30 pm
GammaPoint wrote: Sat May 04, 2024 10:39 am For those of you planning on taking the $1500 tax credit for auto-enrollment, how do you plan on actually capturing that on your return? Are you going to file taxes manually or with a CPA doing it for you? A quick google search suggests it _may_ not be trivial to do with standard tax software. While the $500/year credit is enticing to me, that'll get completely eaten up in either costs or annoyance if I need to do something highly custom when filing taxes.
I wanted to bring back up this post because this is becoming a factor in my decision. I would strongly consider MySolo401k.net due to the $1500 auto-enrollment credit. However, I went into TurboTax to see if I could claim this credit using Part II of Form 8881 and it simply won't work for a sole proprietor, at least at this time. It seems like it may let you fill out Part 1 of Form 8881 for the startup credit, but not just Part 2 where you claim the auto-enrollment credit. (Form 8881 flows into Form 3800 and I can manually go to Form 3800 and fill in the information there. But I can't get Form 8881 to work to claim this credit and flow it into Form 3800.)

I saw some posts elsewhere reaffirming that this isn't working on TurboTax as of the recent version if I had been doing it for 2023 taxes:

https://mysolo401k.net/mycommunity/foru ... -c-filers/

https://ttlc.intuit.com/community/tax-c ... 00/3246643

https://ttlc.intuit.com/community/busin ... 00/3265087

Can anyone share how they are claiming or plan to claim this credit? Do you have to hire a tax preparer to do it? I would already pay more money having to pay to file with TurboTax instead of using my usual service which can't do Form 8881 at all. That might still be worth it to me to do. But if TurboTax can't even file this auto-enrollment credit correctly, then I'm really not sure what to do and if it will make MySolo401k no longer a good deal for me. (It's questionable with their fees if it's worth it to me. But with the auto-enrollment credit offsetting the costs it becomes possibly a very good choice, as long as tax software and/or other costs don't eat away into the credit too much.)

I guess one option which was mentioned earlier in this mega-thread is to do everything else on TurboTax, then manually do Form 8881 and print it all out and mail it in. That sounds like a huge hassle and I would be concerned mailing in my taxes rather than e-filing and getting confirmation of everything.
I'm probably a bit too cynical, but there were a lot of posts early in this thread pushing MySolo401k with the argument about the tax credit covering the annual fees, at least for a few years. I never like deals where the benefit hangs somewhere out in the future, but I'll definitely be on the hook for hundreds of dollars in fees for sure. MySolo401k does not strike me as something that a fee conscious Boglehead would choose. Their services don't seem worth the fees to me as 1099-Rs are produced by Vanguard, Schwab, Fidelity etc for free and the 5500-EZ is trivial to file electronically. I had to do a bit of work to amend my Vanguard solo 401k to Schwab, but I've leaned a few things and mu costs will be very low. Fidelity or Schwab seem like the engaged, low fee loving, Boglehead options.
The main reason to do MySolo401k for me would be to be able to do Megabackdoor Roth and be able to both put more total in the Solo 401(k) a year than I can otherwise and be able to get a lot of that money into my Roth IRA where I have access to the contributions if I need them (which would then allow me to feel more comfortable with a smaller emergency fund elsewhere and thus able to invest more of my portfolio). Overall I think this might very well be worth the fees. MySolo401k is I think $650 total for the first year including setup and then $125 a year after. Even if I only got the $500 credit once and offset most of that first year fee and I had to pay $125 a year after that, I think it may very well be worth what I'd gain. If I got the other 2 years of $500 on top of that it would be a no-brainer for me...if only I can actually claim the credit.
I've seen "megabackdoor ROTHs" mentioned for both Fidelity and Schwab too. It seems to me that MySolo401k are good at marketing features that are available at a lot of other providers.
I don't believe you can do megabackdoor Roth with Fidelity and Schwab's own Solo 401(k) plans. You can if you use a third party's plan, like MySolo401k's, and then just use Fidelity or Schwab as the custodian for the various accounts in the plan. You can basically do megabackdoor Roth using any broker as your custodian if the plan is administered by someone like MySolo401k. Even E*TRADE, which actually did allow megabackdoor Roth in their own plan not long ago, got rid of it. None of the free or close-to-free Solo 401(k) providers allow megabackdoor Roth. E*TRADE is the only one I know of that even allows voluntary after-tax contributions at all. But again, even they no longer allow you to then move those funds into the Roth IRA.
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