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

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

Post by retiredjg »

TexasRads wrote: Mon Jun 10, 2024 10:13 pm
retiredjg wrote: Sat Jun 01, 2024 5:29 pm If i'm not mistaken, mysolo and solo401k are document providers, not third party administrators.

For better or worse, you will be the administrator or your own plan. This carries some risk of not knowing anything about what you are doing and messing it up. Some people here have done OK, but you should not assume that is a given.
Other than filing a 5500 ez and 1099 when that is due and just keeping a general excel of your contributions , is there much else complexity to it? Thanks in advance !
I think that depends on who you ask. Harry Sit (thefinancebuff or tfb - a respected poster here) published some articles on this topic when it first became a topic. Here is one of them https://thefinancebuff.com/executing-me ... -401k.html There is a link in there to an earlier article you should follow as well. I think most of the information in these articles is still current.

His warning at the time is that many people don't know enough about administering retirement plans to be successful at this. His warning was to hire a plan administrator (not the same as a document provider).

There are people here at BH who do their own plan administration and think it is a piece of cake. I believe at least one person has posted how things didn't go so well. And others may have failed but have posted anything publicly about it.
SuzBanyan
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by SuzBanyan »

Just a heads up for those who moved 401ks to Schwab. I just received an email asking for a form to be completed with contribution info regarding the Roth account. There was a link to the Schwab form and I the email noted the following: “Please make sure to include:
- The year of the first Roth 401(k) contribution. If not provided, we will default to the year in which the plan was established at Schwab.
- The amount of the total Roth 401(k) contributions made at the prior firm. If not provided, the deposited amount will be treated as earnings and may be taxable when distributed.”
jamesbogle
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by jamesbogle »

SuzBanyan wrote: Tue Jun 11, 2024 10:39 am Just a heads up for those who moved 401ks to Schwab. I just received an email asking for a form to be completed with contribution info regarding the Roth account. There was a link to the Schwab form and I the email noted the following: “Please make sure to include:
- The year of the first Roth 401(k) contribution. If not provided, we will default to the year in which the plan was established at Schwab.
- The amount of the total Roth 401(k) contributions made at the prior firm. If not provided, the deposited amount will be treated as earnings and may be taxable when distributed.”
Yeah, the transfer form right? It was the 3rd form as part of the application process. Not sure why it doesn't ask for Vanguard's account number though. I guess that's yet another form.
Bfwolf
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by Bfwolf »

For solo 401k transfers from Vanguard to Schwab, when you guys filled out the Transfer Your Account to Schwab form, did you select Part 3, "Credit Union, Bank, Brokerage, Trust Company, and/or Dividend Reinvestment Transfers" or Part 5, "Mutual Fund Company Transfers?"

Also, what did you put for Account Registration both under the Schwab and Vanguard part?
HJK64
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by HJK64 »

tranceFusion wrote: Thu May 23, 2024 12:31 pm I see a few people in this thread complaining about issues transfering to Schwab. Has anyone done this successfully at this point?

And if so would you mind to give a basic outline of the steps? I already have a Schwab brokerage account. It looks from their i401k page that I need to apply to Schwab as a new i401k plan and then when that is done, fill out a different form to transfer the assets from Vanguard? How does the IRS know it's the same plan and not a "successor" plan?
Did you go through with the transfer? I was originally going to not do anything and allow my account to be sent to Ascensus but after reading this thread, I'm now thinking maybe I should transfer to Schwab instead. I have a small traditional Solo 401k I setup about six years ago. I don't need to do anything exotic, just invest in vanilla index products.

Is there anything in particular I need to watch out for when filling out the Schwab form? Would stopping by a local Schwab office be a recommended step? Would they know anything about Solo 401k's?

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

Post by WoodSprite »

I'm in the middle of this process and had a quick question. Where to you find your I-401K EIN number? I am in my VG Small Biz portal, in my 401K account (I'm the admin) and I don't see it anywhere. I've also looked through all the documents I received last year and can't find any mention of it. I was told that the 401K has its own EIN, different from my biz's EIN, but I can't find any mention of it in my account anywhere.
WoodSprite
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by WoodSprite »

I have a call scheduled with MySolo401K to answer my questions about their service before making my final decision to select them, BUT, the earliest they can talk to me is the 17th! 5 days from now!! Grrr. I'm not sure I like that it takes that long to speak to a representative. :( Really want to get this show on the road before then.

Can anyone who uses MySolo401K answer some basic questions for me:

1. Would I have a portal through MySolo401K that is separate from my custodian's portal? (I will be using Schwab). Would I make my contributions and view my investments through the Schwab portal or the MySolo401K portal?

2. What happens if, God forbid, MySolo401K goes out of business? What happens to my plan? I'm assuming the assets would be okay since they are at Schwab which has SIPC insurance. But would I be in a world of hurt with my documents? I know I'd be the plan administrator, but I don't quite understand if a document provider going out of business would harm things terribly or not.

3. Does the auto-enrollment tax credit still apply to a Schedule C business with no employees other than the two owners (my husband and myself)?

4. Will there be additional fees down the road if we want any changes made to our plan, or, change our business from a Schedule C to an S-Corp? For example if we decide we want the employer side to be Roth (right now we're doing Employer Traditional/Employee Roth to balance current tax burdens with future happiness) or do the Mega Back Door in a future year?

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

Post by Wrench »

WoodSprite wrote: Wed Jun 12, 2024 1:55 pm I have a call scheduled with MySolo401K to answer my questions about their service before making my final decision to select them, BUT, the earliest they can talk to me is the 17th! 5 days from now!! Grrr. I'm not sure I like that it takes that long to speak to a representative. :( Really want to get this show on the road before then.

Can anyone who uses MySolo401K answer some basic questions for me:

1. Would I have a portal through MySolo401K that is separate from my custodian's portal? (I will be using Schwab). Would I make my contributions and view my investments through the Schwab portal or the MySolo401K portal?

2. What happens if, God forbid, MySolo401K goes out of business? What happens to my plan? I'm assuming the assets would be okay since they are at Schwab which has SIPC insurance. But would I be in a world of hurt with my documents? I know I'd be the plan administrator, but I don't quite understand if a document provider going out of business would harm things terribly or not.

3. Does the auto-enrollment tax credit still apply to a Schedule C business with no employees other than the two owners (my husband and myself)?

4. Will there be additional fees down the road if we want any changes made to our plan, or, change our business from a Schedule C to an S-Corp? For example if we decide we want the employer side to be Roth (right now we're doing Employer Traditional/Employee Roth to balance current tax burdens with future happiness) or do the Mega Back Door in a future year?

Thanks
I completed mysolo401k account setup using Fidelity, but I presume the details are the same regardless of which broker/bank you use. To answer your questions:
1. I have made contributions to my new i401k at Fidelity. Contributions are made directly to the brokerage. There may be forms to fill out at Schwab (I don't know), but at Fidelity, I just contributed directly to the proper account using mobile deposit in the Fidelity app.
2. The Solo 401k Trust documents, Trustees and EIN you get when you use my solo401k are independent of them. If they disappear, then nothing should change for your solo 401k. What you would lose is their help/support in creating annual forms like 5500 and 1099s, as well as support/advice on other options in solo 401k like alternative investments, or how to properly claim auto-enrollment credit.
3. Auto-enrollment credit question is one for them to answer, but I don't see why it wouldn't apply.
4. Again, a question for them. If you have to create/modify your i401k plan/documents, I would guess/expect there would be additional fees. I don't know whether that would be required for Sch C-->S-Corp transition. Presumably, they could tell you for sure. (At least if you use them, you have someone to call to get the answer to that question, which may or may not be true with Ascensus or some other provider).

I will warn you that there is a blizzard of paperwork involved in setting things up because you open 6 accounts, Roth, pre-tax and after-tax for both you and your spouse. The mysolo401k instructions are complete and relatively easy to follow. But it was still a PITA with many forms to complete and sign, then scan and upload everything. I hope I never have to do it again!

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

Post by SuzBanyan »

jamesbogle wrote: Tue Jun 11, 2024 11:06 am
SuzBanyan wrote: Tue Jun 11, 2024 10:39 am Just a heads up for those who moved 401ks to Schwab. I just received an email asking for a form to be completed with contribution info regarding the Roth account. There was a link to the Schwab form and I the email noted the following: “Please make sure to include:
- The year of the first Roth 401(k) contribution. If not provided, we will default to the year in which the plan was established at Schwab.
- The amount of the total Roth 401(k) contributions made at the prior firm. If not provided, the deposited amount will be treated as earnings and may be taxable when distributed.”
Yeah, the transfer form right? It was the 3rd form as part of the application process. Not sure why it doesn't ask for Vanguard's account number though. I guess that's yet another form.
It’s in addition to the transfer forms (I believe there are 2 needed) for the Roth 401k account. You can see it here: https://www.schwab.com/resource/roth-i4 ... -data-form

Nothing complicated; but you do want to make sure you have the info available.
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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 »

WoodSprite wrote: Wed Jun 12, 2024 1:55 pm I have a call scheduled with MySolo401K to answer my questions about their service before making my final decision to select them, BUT, the earliest they can talk to me is the 17th! 5 days from now!! Grrr. I'm not sure I like that it takes that long to speak to a representative. :( Really want to get this show on the road before then.

Can anyone who uses MySolo401K answer some basic questions for me:

1. Would I have a portal through MySolo401K that is separate from my custodian's portal? (I will be using Schwab). Would I make my contributions and view my investments through the Schwab portal or the MySolo401K portal?

2. What happens if, God forbid, MySolo401K goes out of business? What happens to my plan? I'm assuming the assets would be okay since they are at Schwab which has SIPC insurance. But would I be in a world of hurt with my documents? I know I'd be the plan administrator, but I don't quite understand if a document provider going out of business would harm things terribly or not.

3. Does the auto-enrollment tax credit still apply to a Schedule C business with no employees other than the two owners (my husband and myself)?

4. Will there be additional fees down the road if we want any changes made to our plan, or, change our business from a Schedule C to an S-Corp? For example if we decide we want the employer side to be Roth (right now we're doing Employer Traditional/Employee Roth to balance current tax burdens with future happiness) or do the Mega Back Door in a future year?

Thanks
Just to add what Wrench said, if MySolo401k goes out of business, your plan doesn't. However, you will need to find a replacement because plans undergo amendments to stay compliant with IRS regulations. If you miss one because you didn't change providers, then you risk losing tax favored status with your Solo 401(k).

The only issue I had with the process was transferring assets. Initially, MySolo401k sent me a distribution form. This can be done, but Vanguard insisted I terminate the plan as the only way they would issue a distribution. This isn't accurate as they should have done a direct rollover with the distribution check mailed to you (your trust) and you depositing it into your brokerage. Nonetheless, using transfer of assets form from Fidelity and getting Medallion Signature Guarantees (pre-tax and Roth accounts), assets transferred in-kind. I ended up selling them and buying Fidelity firms as Fidelity charges to purchase additional shares of Vanguard mutual funds.

I did not open an after-tax account. I opened pre-tax and Roth accounts with checkbook control, but I do not plan to use the checkbooks. I have no interest to invest in real estate.

I have deposited to my account via regular check using the Fidelity non-prototype retirement account form. One of these deposits I selected a mutual fund to purchase so it was automatic. One time I deposited via mobile app. I have Bank of America set to direct deposit into my pre-tax account monthly starting 6/17. You keep election deferral forms/memos, contribution paperwork, etc. yourself in case of audit.

MySolo401k has been extremely responsive to emails. I highly recommend them.
GoldenBear17
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by GoldenBear17 »

WoodSprite wrote: Wed Jun 12, 2024 1:55 pm 3. Does the auto-enrollment tax credit still apply to a Schedule C business with no employees other than the two owners (my husband and myself)?
As far as I know the auto-enrollment tax credit still applies. Some of us though are wondering how we will actually claim the credit. Do you do your own taxes or have a CPA or someone who does them? If you do them yourself, we are trying to figure out if any tax software is capable of properly claiming this credit. I haven't seen one yet.
WoodSprite
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by WoodSprite »

Thank you so much Wrench, SouthernDoc and GoldenBear.

My husband and I have an accountant do out taxes bc with our business, W2 work outside our biz, and various other things in our lives they are complicated and we feel the fee is worth the risk mitigation.

I will try emailing my questions to MySolo401K today. I haven't tried that way of contacting them yet.

Is there a reason all of your chose Fidelity over Schwab?

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

Post by Wrench »

GoldenBear17 wrote: Thu Jun 13, 2024 7:52 am
WoodSprite wrote: Wed Jun 12, 2024 1:55 pm 3. Does the auto-enrollment tax credit still apply to a Schedule C business with no employees other than the two owners (my husband and myself)?
As far as I know the auto-enrollment tax credit still applies. Some of us though are wondering how we will actually claim the credit. Do you do your own taxes or have a CPA or someone who does them? If you do them yourself, we are trying to figure out if any tax software is capable of properly claiming this credit. I haven't seen one yet.
I've never had/been able to claim the credit before, but TurboTax says it supports Form 8881 that is used to claim the credit. So I am hopeful it will be possible/straightforward using TurboTax:
https://turbotax.intuit.com/tax-tips/sm ... /L0Yjqy0Ya

Wrench
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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 »

WoodSprite wrote: Thu Jun 13, 2024 8:41 am Thank you so much Wrench, SouthernDoc and GoldenBear.

My husband and I have an accountant do out taxes bc with our business, W2 work outside our biz, and various other things in our lives they are complicated and we feel the fee is worth the risk mitigation.

I will try emailing my questions to MySolo401K today. I haven't tried that way of contacting them yet.

Is there a reason all of your chose Fidelity over Schwab?

Thanks.
I prefer Fidelity because their customer service is excellent. I have my traditional investment, HSA, and cash management accounts with them (although I use their cash management account primarily for an emergency fund as I have checking accounts with Bank of America).
Bets61
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by Bets61 »

I had a small business that had a 401K and Cash Balance with FuturePlan which is owned by Asensus. Terminated CB Plan in 2021 and 401K in 2022 when I retired and closed my business. Absolute nightmare with FuturePlan getting distribution reports and having them file the 5500s. Just had them complete the final paperwork and they sent yet another bill even though I prepaid all fees in 2021 and 2022. I would run if FuturePlan is involved in any manner
Lastrun
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by Lastrun »

Just and FYI, and perhaps only slightly related to the 401K move to Ascensus. I have my employer 401K with Ascensus (Vanguard) and recently did an in-service distribution to my long-standing zero balance Vanguard Traditional IRA (used in the past for back-door Roths). Ascensus would only allow transfer by check, and to add to this, Vanguard put a 7-day hold on the deposited funds. :annoyed
buldogge
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by buldogge »

I figure I will provide a few bits of info/anecdotes from my i401k and SEP (2 different companies) transition to Fidelity, from Vanguard. I also used MySolo401k for non-prototype accounts, pre-, after-, and Roth accounts.

Let me start by saying, I would never have left Vanguard if it weren't for the forced transition. I truly don't understand people who have a problem with Vanguards customer service and/or web interfaces. Has Vanguard ever given me mis-info...well, not until I asked about a trad IRA rollover into the i401k (just before transferring out), and that is the one and only time (involved pro-rata discussion for Roth conversion to follow).

Anyway...I've been less than impressed with both MySolo401k and Fidelity.

In the case of MySolo401k...

1) Too many cooks in the kitchen...My wishes for how I wanted the transfer handled were somehow lost in the multiple emails/questionnaire , and I ended up doing the whole overnight paper forms and wait for check thing. Yes, I missed catching it on the paperwork , but I had a direct discussion about the funds held, etc, and how I wanted that handled.

2) You can't pick up the phone and call them, when something is time critical (ie standing in the Fidelity office)...calendar schedule a call...really...no thanks.

In the case of Fidelity...

1) There is no separate small-biz site to administer from. I ended up creating (2) corporate brokerage accounts at Fidelity to handle deferrals/contributions to these i401k and SEP accounts, and even after doing that, my only option is to call in and initiate the transfers...EVERY TIME. Also, in the case of the SEPs, I have to gather the account # from each employee, as opposed to having it in a portal and undertaking the administration....weird. I was given different information by several Fidelity reps, which is why I went thru the trouble of setting up corporate brokerages. In the end, I will just one of them as that business' general checking/banking account...so works out OK, I guess.

2) Not a big deal...but they do not separate employEE and employER "deposits"...Vanguard offered a very simple (albeit outdated) small-biz website with these functions and info at your fingertips. I'll just make a simple spreadsheet, I guess.

In the end I should have just gone with a std Fidelity i401k, as I don't currently even use the Roth/after-/MBDR aspects, and worried about it if/when I decided to undertake MBDR.

-Mark in St. Louis
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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 »

Bfwolf wrote: Tue Jun 11, 2024 9:19 pm For solo 401k transfers from Vanguard to Schwab, when you guys filled out the Transfer Your Account to Schwab form, did you select Part 3, "Credit Union, Bank, Brokerage, Trust Company, and/or Dividend Reinvestment Transfers" or Part 5, "Mutual Fund Company Transfers?"

Also, what did you put for Account Registration both under the Schwab and Vanguard part?
I filled out Part 3 (Full) but then got a message from Schwab asking me to call it. The questions the CSR asked me indicated that Part 5 should have been filled out. So, I suggest Part 5.

For Account Registration I put "Individual 401(k) (Traditional)" and "Individual 401(k) (Roth)". "Account Registration" refers to the ownership structure--e.g., JTWROS. You could probably also put "Individual".
gdasa
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by gdasa »

buldogge wrote: Fri Jun 14, 2024 6:38 pm In the end I should have just gone with a std Fidelity i401k, as I don't currently even use the Roth/after-/MBDR aspects, and worried about it if/when I decided to undertake MBDR.
If you are not using Roth/AfterTax, then go ahead to amend your solo 401k plan with Fidelity plan document. Keep it easy. You will save annual maintenance cost from mysolo401k.
buldogge
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by buldogge »

gdasa wrote: Fri Jun 14, 2024 7:41 pm If you are not using Roth/AfterTax, then go ahead to amend your solo 401k plan with Fidelity plan document. Keep it easy. You will save annual maintenance cost from mysolo401k.
It’s water under the bridge, now. Tied by contract/agreement, for at least 12 months. Again, it’s just a means to leave options open.

As long as I can administer the various accounts, as necessary…the rest of it is just what it is…in the end, the $125/yr will be a minor blip.

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

Post by CFM300 »

WoodSprite wrote: Wed Jun 12, 2024 1:21 pm Where to you find your I-401K EIN number? I am in my VG Small Biz portal, in my 401K account (I'm the admin) and I don't see it anywhere
You can see the last four digits of the EIN associated with the plan sponsor by going to:

Plan Administration > Plan Role Administration
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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 »

buldogge wrote: Fri Jun 14, 2024 6:38 pm I figure I will provide a few bits of info/anecdotes from my i401k and SEP (2 different companies) transition to Fidelity, from Vanguard. I also used MySolo401k for non-prototype accounts, pre-, after-, and Roth accounts.

Let me start by saying, I would never have left Vanguard if it weren't for the forced transition. I truly don't understand people who have a problem with Vanguards customer service and/or web interfaces. Has Vanguard ever given me mis-info...well, not until I asked about a trad IRA rollover into the i401k (just before transferring out), and that is the one and only time (involved pro-rata discussion for Roth conversion to follow).

Anyway...I've been less than impressed with both MySolo401k and Fidelity.

In the case of MySolo401k...

1) Too many cooks in the kitchen...My wishes for how I wanted the transfer handled were somehow lost in the multiple emails/questionnaire , and I ended up doing the whole overnight paper forms and wait for check thing. Yes, I missed catching it on the paperwork , but I had a direct discussion about the funds held, etc, and how I wanted that handled.

2) You can't pick up the phone and call them, when something is time critical (ie standing in the Fidelity office)...calendar schedule a call...really...no thanks.

In the case of Fidelity...

1) There is no separate small-biz site to administer from. I ended up creating (2) corporate brokerage accounts at Fidelity to handle deferrals/contributions to these i401k and SEP accounts, and even after doing that, my only option is to call in and initiate the transfers...EVERY TIME. Also, in the case of the SEPs, I have to gather the account # from each employee, as opposed to having it in a portal and undertaking the administration....weird. I was given different information by several Fidelity reps, which is why I went thru the trouble of setting up corporate brokerages. In the end, I will just one of them as that business' general checking/banking account...so works out OK, I guess.

2) Not a big deal...but they do not separate employEE and employER "deposits"...Vanguard offered a very simple (albeit outdated) small-biz website with these functions and info at your fingertips. I'll just make a simple spreadsheet, I guess.

In the end I should have just gone with a std Fidelity i401k, as I don't currently even use the Roth/after-/MBDR aspects, and worried about it if/when I decided to undertake MBDR.

-Mark in St. Louis
You set up a Fidelity corporate account to administer things? Can you provide more information on that?

You can push ACH deposits from your bank to your Fidelity non-prototype retirement accounts. I have mine set up to automatically push from my Bank of America business checking account both an employer contribution as well as my employee elective deferrals. I print out the confirmations and attach it to a form that I created stating it's an employer contribution, employee deferral, employee elective deferral, etc. These are saved in a folder. Any prior year stuff I mail a check with the form as well as keep copies for my records. I scan everything in and store it in a OneDrive folder in case my house burns down and IRS needs records of contributions in the future.

I do wonder, however, when Fidelity creates a Roth component with their Self-Employed 401(k), what would be the proper procedure to restate the plan to Fidelity now that it is under a third-party administrator with a trust EIN. Would you simply use the trust EIN when you establish the Fidelity plan? So far MySolo401k has been great responding to my numerous emails. I haven't had a need to call them because nothing has been that urgent. I plan on using them for many years to come.
buldogge
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by buldogge »

southerndoc wrote: Sat Jun 15, 2024 3:06 pm You set up a Fidelity corporate account to administer things? Can you provide more information on that?

You can push ACH deposits from your bank to your Fidelity non-prototype retirement accounts. I have mine set up to automatically push from my Bank of America business checking account both an employer contribution as well as my employee elective deferrals. I print out the confirmations and attach it to a form that I created stating it's an employer contribution, employee deferral, employee elective deferral, etc. These are saved in a folder. Any prior year stuff I mail a check with the form as well as keep copies for my records. I scan everything in and store it in a OneDrive folder in case my house burns down and IRS needs records of contributions in the future.

I do wonder, however, when Fidelity creates a Roth component with their Self-Employed 401(k), what would be the proper procedure to restate the plan to Fidelity now that it is under a third-party administrator with a trust EIN. Would you simply use the trust EIN when you establish the Fidelity plan? So far MySolo401k has been great responding to my numerous emails. I haven't had a need to call them because nothing has been that urgent. I plan on using them for many years to come.
I opened (2) additional brokerage accounts (2 different corporations), mainly because I was (wrongly) informed by Fidelity reps that I would then be able to easily/directly transfer funds to the appropriate retirement accounts (i401k for one and SEP for the other). On one acct I set-up EFT from the existing business checking account, held at a local CU, and with the other (smaller company), I moved the entire business checking there, with that Fidelity brokerage acct now acting as that business' de facto checking account.

In the end, I'll have to pick up the phone every month and call in these transfers/contributions/deferrals...kinda crazy/silly, in 2024, if you ask me.

Bottomline...setting up these brokerage accounts did little for me, other than move a chunk of money into a MMF bearing greater interest than the CU business checking.

Again, I don't understand the disdain displayed lately for Vanguard, on this board...everything was much more straightforward and streamlined at VG.

As you point out above...I'll just keep a digital and paper folder of these transactions/forms, and create a spreadsheet...sigh.

Oh well...new chapter...new "challenges".

As far as your last question...I don't know the answer...but would assume you could use the now established trust for the restatement, combining pre- and Roth statements, and simply eliminating the after-tax component, during restatement. Seems like MySolo401k could and should answer that possibility , while they're being paid.

-Mark
GoldenBear17
Posts: 362
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 »

Wrench wrote: Thu Jun 13, 2024 12:45 pm
GoldenBear17 wrote: Thu Jun 13, 2024 7:52 am
WoodSprite wrote: Wed Jun 12, 2024 1:55 pm 3. Does the auto-enrollment tax credit still apply to a Schedule C business with no employees other than the two owners (my husband and myself)?
As far as I know the auto-enrollment tax credit still applies. Some of us though are wondering how we will actually claim the credit. Do you do your own taxes or have a CPA or someone who does them? If you do them yourself, we are trying to figure out if any tax software is capable of properly claiming this credit. I haven't seen one yet.
I've never had/been able to claim the credit before, but TurboTax says it supports Form 8881 that is used to claim the credit. So I am hopeful it will be possible/straightforward using TurboTax:
https://turbotax.intuit.com/tax-tips/sm ... /L0Yjqy0Ya

Wrench
TurboTax does support Form 8881 in general. But if you're only using it to claim this auto-enrollment credit as a sole proprietor, it doesn't seem capable of supporting it for that particular use at this time. You can read more about it in this thread on their forum.

https://ttlc.intuit.com/community/busin ... light/true

In short, someone in the situation I just mentioned needs to fill out only Part II of Form 8881 and have that part flow into Form 3800 properly. Apparently, TurboTax can be used to do Part I of Form 8881, the part for the Startup Credit. But it doesn't seem to be able to fill out just Part II for the auto-enrollment credit properly. TurboTax says in that thread that they're working on it, but users say it doesn't work still. I don't know if eventually it will work or not and not knowing that is causing a real problem since my decision to sign up with someone like MySolo401k could change based on whether I can claim the credit or not.

Can anyone else who files their own taxes and has claimed or is planning to claim this auto-enrollment credit comment?
teacher
Posts: 1173
Joined: Sun Oct 05, 2008 5:45 pm
Location: California

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

Post by teacher »

Please, someone, provide the exact date Vanguard will eliminate the Solo ROTH 401k. I failed to mark it on my calendar.
Thanks in advance!
keyfort
Posts: 384
Joined: Thu Apr 04, 2019 12:46 pm

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

Post by keyfort »

buldogge wrote: Sat Jun 15, 2024 4:25 pm
southerndoc wrote: Sat Jun 15, 2024 3:06 pm You set up a Fidelity corporate account to administer things? Can you provide more information on that?

You can push ACH deposits from your bank to your Fidelity non-prototype retirement accounts. I have mine set up to automatically push from my Bank of America business checking account both an employer contribution as well as my employee elective deferrals. I print out the confirmations and attach it to a form that I created stating it's an employer contribution, employee deferral, employee elective deferral, etc. These are saved in a folder. Any prior year stuff I mail a check with the form as well as keep copies for my records. I scan everything in and store it in a OneDrive folder in case my house burns down and IRS needs records of contributions in the future.

I do wonder, however, when Fidelity creates a Roth component with their Self-Employed 401(k), what would be the proper procedure to restate the plan to Fidelity now that it is under a third-party administrator with a trust EIN. Would you simply use the trust EIN when you establish the Fidelity plan? So far MySolo401k has been great responding to my numerous emails. I haven't had a need to call them because nothing has been that urgent. I plan on using them for many years to come.
I opened (2) additional brokerage accounts (2 different corporations), mainly because I was (wrongly) informed by Fidelity reps that I would then be able to easily/directly transfer funds to the appropriate retirement accounts (i401k for one and SEP for the other). On one acct I set-up EFT from the existing business checking account, held at a local CU, and with the other (smaller company), I moved the entire business checking there, with that Fidelity brokerage acct now acting as that business' de facto checking account.

In the end, I'll have to pick up the phone every month and call in these transfers/contributions/deferrals...kinda crazy/silly, in 2024, if you ask me.

Bottomline...setting up these brokerage accounts did little for me, other than move a chunk of money into a MMF bearing greater interest than the CU business checking.

Again, I don't understand the disdain displayed lately for Vanguard, on this board...everything was much more straightforward and streamlined at VG.

As you point out above...I'll just keep a digital and paper folder of these transactions/forms, and create a spreadsheet...sigh.

Oh well...new chapter...new "challenges".

As far as your last question...I don't know the answer...but would assume you could use the now established trust for the restatement, combining pre- and Roth statements, and simply eliminating the after-tax component, during restatement. Seems like MySolo401k could and should answer that possibility , while they're being paid.

-Mark
Your experience is one of the things I am worried about if I try to move to mysolo401k and use Fidelity to manage the investments.

I don't understand the "trust EIN" being spoken about in comments. I have an EIN for myself as sole proprietor but now I need a trust EIN as well?

I am beginning to think that the simplest thing for me is to either leave it with Ascensus, or:

1. Make my contribution for 2024 of $23,000 as employee deferred, forget about any employer contribution for this year
2. Then instruct Vanguard to close my solo 401k and its Roth, and rollover both traditional and Roth solo 401k to Vanguard IRA and Roth IRA.
3. File 5500-ez for closure of solo 401k
4. Wait 12 months, open a solo 401k at Fidelity and not bother with Roth anymore

Can I do this? Am I allowed to make my $23,000 contribution e.g. on June 20th, 2024, and then close the whole solo 401k on e.g. June 27, 2024?

And then on June 28th, 2025, open a solo 401k with Fidelity, and contribute for 2025?

Edited to add: I tried looking at how to "restate" my plan and move to Schwab but after hours on the phone with their expert, anyone who thinks it takes 10 minutes to fill in the forms and move it from Vanguard to Schwab and get all the transfers done must have a PhD in astrofinance
SuzBanyan
Posts: 2072
Joined: Thu Jun 02, 2016 11:20 am

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

Post by SuzBanyan »

keyfort wrote: Sun Jun 16, 2024 4:45 pm
buldogge wrote: Sat Jun 15, 2024 4:25 pm
southerndoc wrote: Sat Jun 15, 2024 3:06 pm You set up a Fidelity corporate account to administer things? Can you provide more information on that?

You can push ACH deposits from your bank to your Fidelity non-prototype retirement accounts. I have mine set up to automatically push from my Bank of America business checking account both an employer contribution as well as my employee elective deferrals. I print out the confirmations and attach it to a form that I created stating it's an employer contribution, employee deferral, employee elective deferral, etc. These are saved in a folder. Any prior year stuff I mail a check with the form as well as keep copies for my records. I scan everything in and store it in a OneDrive folder in case my house burns down and IRS needs records of contributions in the future.

I do wonder, however, when Fidelity creates a Roth component with their Self-Employed 401(k), what would be the proper procedure to restate the plan to Fidelity now that it is under a third-party administrator with a trust EIN. Would you simply use the trust EIN when you establish the Fidelity plan? So far MySolo401k has been great responding to my numerous emails. I haven't had a need to call them because nothing has been that urgent. I plan on using them for many years to come.
I opened (2) additional brokerage accounts (2 different corporations), mainly because I was (wrongly) informed by Fidelity reps that I would then be able to easily/directly transfer funds to the appropriate retirement accounts (i401k for one and SEP for the other). On one acct I set-up EFT from the existing business checking account, held at a local CU, and with the other (smaller company), I moved the entire business checking there, with that Fidelity brokerage acct now acting as that business' de facto checking account.

In the end, I'll have to pick up the phone every month and call in these transfers/contributions/deferrals...kinda crazy/silly, in 2024, if you ask me.

Bottomline...setting up these brokerage accounts did little for me, other than move a chunk of money into a MMF bearing greater interest than the CU business checking.

Again, I don't understand the disdain displayed lately for Vanguard, on this board...everything was much more straightforward and streamlined at VG.

As you point out above...I'll just keep a digital and paper folder of these transactions/forms, and create a spreadsheet...sigh.

Oh well...new chapter...new "challenges".

As far as your last question...I don't know the answer...but would assume you could use the now established trust for the restatement, combining pre- and Roth statements, and simply eliminating the after-tax component, during restatement. Seems like MySolo401k could and should answer that possibility , while they're being paid.

-Mark
Your experience is one of the things I am worried about if I try to move to mysolo401k and use Fidelity to manage the investments.

I don't understand the "trust EIN" being spoken about in comments. I have an EIN for myself as sole proprietor but now I need a trust EIN as well?

I am beginning to think that the simplest thing for me is to either leave it with Ascensus, or:

1. Make my contribution for 2024 of $23,000 as employee deferred, forget about any employer contribution for this year
2. Then instruct Vanguard to close my solo 401k and its Roth, and rollover both traditional and Roth solo 401k to Vanguard IRA and Roth IRA.
3. File 5500-ez for closure of solo 401k
4. Wait 12 months, open a solo 401k at Fidelity and not bother with Roth anymore

Can I do this? Am I allowed to make my $23,000 contribution e.g. on June 20th, 2024, and then close the whole solo 401k on e.g. June 27, 2024?

And then on June 28th, 2025, open a solo 401k with Fidelity, and contribute for 2025?

Edited to add: I tried looking at how to "restate" my plan and move to Schwab but after hours on the phone with their expert, anyone who thinks it takes 10 minutes to fill in the forms and move it from Vanguard to Schwab and get all the transfers done must have a PhD in astrofinance
I moved my Solo 401k accounts to Schwab. It did take some time to complete the forms. I tried to complete everything on line, then met in person at the Schwab office. There were some additional forms needed, which I completed. The transfers took a few days for the non-Roth and a little over a week for the Roth. A few weeks later, I was asked to complete on more form for the Roth 401k. I also had to complete forms for the beneficiary designations and upload them. So, not 10 minutes, but not horrible either.

The potential problem with the contribute, then terminate, then wait a year plan may have to do with your income. It is not clear that you can contribute to a Solo 401k based on income earned either after it is terminated or before the next plan starts. If your income is sufficient, this may not matter as you can fully fund based on income for a half a year. For others, this may be a problem.

As to the EIN issue, I am a sole proprietorship and used my SS# as my tax ID until I set up my 401k. I then used my new EIN for the 401k, but continued to use my SS# for all other matters. I don’t know if this is sufficient and have not yet needed to file a 5500.

Hope this helps.
keyfort
Posts: 384
Joined: Thu Apr 04, 2019 12:46 pm

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

Post by keyfort »

SuzBanyan wrote: Sun Jun 16, 2024 5:44 pm
keyfort wrote: Sun Jun 16, 2024 4:45 pm
buldogge wrote: Sat Jun 15, 2024 4:25 pm
southerndoc wrote: Sat Jun 15, 2024 3:06 pm You set up a Fidelity corporate account to administer things? Can you provide more information on that?

You can push ACH deposits from your bank to your Fidelity non-prototype retirement accounts. I have mine set up to automatically push from my Bank of America business checking account both an employer contribution as well as my employee elective deferrals. I print out the confirmations and attach it to a form that I created stating it's an employer contribution, employee deferral, employee elective deferral, etc. These are saved in a folder. Any prior year stuff I mail a check with the form as well as keep copies for my records. I scan everything in and store it in a OneDrive folder in case my house burns down and IRS needs records of contributions in the future.

I do wonder, however, when Fidelity creates a Roth component with their Self-Employed 401(k), what would be the proper procedure to restate the plan to Fidelity now that it is under a third-party administrator with a trust EIN. Would you simply use the trust EIN when you establish the Fidelity plan? So far MySolo401k has been great responding to my numerous emails. I haven't had a need to call them because nothing has been that urgent. I plan on using them for many years to come.
I opened (2) additional brokerage accounts (2 different corporations), mainly because I was (wrongly) informed by Fidelity reps that I would then be able to easily/directly transfer funds to the appropriate retirement accounts (i401k for one and SEP for the other). On one acct I set-up EFT from the existing business checking account, held at a local CU, and with the other (smaller company), I moved the entire business checking there, with that Fidelity brokerage acct now acting as that business' de facto checking account.

In the end, I'll have to pick up the phone every month and call in these transfers/contributions/deferrals...kinda crazy/silly, in 2024, if you ask me.

Bottomline...setting up these brokerage accounts did little for me, other than move a chunk of money into a MMF bearing greater interest than the CU business checking.

Again, I don't understand the disdain displayed lately for Vanguard, on this board...everything was much more straightforward and streamlined at VG.

As you point out above...I'll just keep a digital and paper folder of these transactions/forms, and create a spreadsheet...sigh.

Oh well...new chapter...new "challenges".

As far as your last question...I don't know the answer...but would assume you could use the now established trust for the restatement, combining pre- and Roth statements, and simply eliminating the after-tax component, during restatement. Seems like MySolo401k could and should answer that possibility , while they're being paid.

-Mark
Your experience is one of the things I am worried about if I try to move to mysolo401k and use Fidelity to manage the investments.

I don't understand the "trust EIN" being spoken about in comments. I have an EIN for myself as sole proprietor but now I need a trust EIN as well?

I am beginning to think that the simplest thing for me is to either leave it with Ascensus, or:

1. Make my contribution for 2024 of $23,000 as employee deferred, forget about any employer contribution for this year
2. Then instruct Vanguard to close my solo 401k and its Roth, and rollover both traditional and Roth solo 401k to Vanguard IRA and Roth IRA.
3. File 5500-ez for closure of solo 401k
4. Wait 12 months, open a solo 401k at Fidelity and not bother with Roth anymore

Can I do this? Am I allowed to make my $23,000 contribution e.g. on June 20th, 2024, and then close the whole solo 401k on e.g. June 27, 2024?

And then on June 28th, 2025, open a solo 401k with Fidelity, and contribute for 2025?

Edited to add: I tried looking at how to "restate" my plan and move to Schwab but after hours on the phone with their expert, anyone who thinks it takes 10 minutes to fill in the forms and move it from Vanguard to Schwab and get all the transfers done must have a PhD in astrofinance
I moved my Solo 401k accounts to Schwab. It did take some time to complete the forms. I tried to complete everything on line, then met in person at the Schwab office. There were some additional forms needed, which I completed. The transfers took a few days for the non-Roth and a little over a week for the Roth. A few weeks later, I was asked to complete on more form for the Roth 401k. I also had to complete forms for the beneficiary designations and upload them. So, not 10 minutes, but not horrible either.

The potential problem with the contribute, then terminate, then wait a year plan may have to do with your income. It is not clear that you can contribute to a Solo 401k based on income earned either after it is terminated or before the next plan starts. If your income is sufficient, this may not matter as you can fully fund based on income for a half a year. For others, this may be a problem.

As to the EIN issue, I am a sole proprietorship and used my SS# as my tax ID until I set up my 401k. I then used my new EIN for the 401k, but continued to use my SS# for all other matters. I don’t know if this is sufficient and have not yet needed to file a 5500.

Hope this helps.
Thanks.

One thing I've extremely confused by is which companies act as trust or custodian etc. There used to be a table on another site that had a comparison but it's disappeared.

I don't understand what the consequences are of using a provider that doesn't act as the trust. This is all very headache inducing.
User avatar
southerndoc
Posts: 1336
Joined: Wed Apr 22, 2009 7:07 pm
Location: Atlanta

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

Post by southerndoc »

keyfort wrote: Sun Jun 16, 2024 4:45 pm
buldogge wrote: Sat Jun 15, 2024 4:25 pm
southerndoc wrote: Sat Jun 15, 2024 3:06 pm You set up a Fidelity corporate account to administer things? Can you provide more information on that?

You can push ACH deposits from your bank to your Fidelity non-prototype retirement accounts. I have mine set up to automatically push from my Bank of America business checking account both an employer contribution as well as my employee elective deferrals. I print out the confirmations and attach it to a form that I created stating it's an employer contribution, employee deferral, employee elective deferral, etc. These are saved in a folder. Any prior year stuff I mail a check with the form as well as keep copies for my records. I scan everything in and store it in a OneDrive folder in case my house burns down and IRS needs records of contributions in the future.

I do wonder, however, when Fidelity creates a Roth component with their Self-Employed 401(k), what would be the proper procedure to restate the plan to Fidelity now that it is under a third-party administrator with a trust EIN. Would you simply use the trust EIN when you establish the Fidelity plan? So far MySolo401k has been great responding to my numerous emails. I haven't had a need to call them because nothing has been that urgent. I plan on using them for many years to come.
I opened (2) additional brokerage accounts (2 different corporations), mainly because I was (wrongly) informed by Fidelity reps that I would then be able to easily/directly transfer funds to the appropriate retirement accounts (i401k for one and SEP for the other). On one acct I set-up EFT from the existing business checking account, held at a local CU, and with the other (smaller company), I moved the entire business checking there, with that Fidelity brokerage acct now acting as that business' de facto checking account.

In the end, I'll have to pick up the phone every month and call in these transfers/contributions/deferrals...kinda crazy/silly, in 2024, if you ask me.

Bottomline...setting up these brokerage accounts did little for me, other than move a chunk of money into a MMF bearing greater interest than the CU business checking.

Again, I don't understand the disdain displayed lately for Vanguard, on this board...everything was much more straightforward and streamlined at VG.

As you point out above...I'll just keep a digital and paper folder of these transactions/forms, and create a spreadsheet...sigh.

Oh well...new chapter...new "challenges".

As far as your last question...I don't know the answer...but would assume you could use the now established trust for the restatement, combining pre- and Roth statements, and simply eliminating the after-tax component, during restatement. Seems like MySolo401k could and should answer that possibility , while they're being paid.

-Mark
Your experience is one of the things I am worried about if I try to move to mysolo401k and use Fidelity to manage the investments.

I don't understand the "trust EIN" being spoken about in comments. I have an EIN for myself as sole proprietor but now I need a trust EIN as well?

I am beginning to think that the simplest thing for me is to either leave it with Ascensus, or:

1. Make my contribution for 2024 of $23,000 as employee deferred, forget about any employer contribution for this year
2. Then instruct Vanguard to close my solo 401k and its Roth, and rollover both traditional and Roth solo 401k to Vanguard IRA and Roth IRA.
3. File 5500-ez for closure of solo 401k
4. Wait 12 months, open a solo 401k at Fidelity and not bother with Roth anymore

Can I do this? Am I allowed to make my $23,000 contribution e.g. on June 20th, 2024, and then close the whole solo 401k on e.g. June 27, 2024?

And then on June 28th, 2025, open a solo 401k with Fidelity, and contribute for 2025?

Edited to add: I tried looking at how to "restate" my plan and move to Schwab but after hours on the phone with their expert, anyone who thinks it takes 10 minutes to fill in the forms and move it from Vanguard to Schwab and get all the transfers done must have a PhD in astrofinance
Probably overcomplicating things. I overthought things as well. I wouldn't allow the plan to terminate. Just let MySolo401k do their thing: get a trust set up, trust EIN, and open your accounts at Fidelity if you choose. You may not be able to move things over in time since it's so late in the month. It'll take 3-4 weeks to get everything set up and transfers in-kind to happen.

One thing you can do is let it move to Ascensus, wait for Fidelity to become SECURE 2.0 compliant (they said 2025), and then move it to Fidelity. That would probably be the easiest option. If you don't need plan loans, checkbook control, megabackdoor Roth option, etc. then it's probably the better option for someone that just wants standard cookie cutter pre-tax and Roth components.
keyfort
Posts: 384
Joined: Thu Apr 04, 2019 12:46 pm

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

Post by keyfort »

southerndoc wrote: Sun Jun 16, 2024 6:29 pm
keyfort wrote: Sun Jun 16, 2024 4:45 pm
buldogge wrote: Sat Jun 15, 2024 4:25 pm
southerndoc wrote: Sat Jun 15, 2024 3:06 pm You set up a Fidelity corporate account to administer things? Can you provide more information on that?

You can push ACH deposits from your bank to your Fidelity non-prototype retirement accounts. I have mine set up to automatically push from my Bank of America business checking account both an employer contribution as well as my employee elective deferrals. I print out the confirmations and attach it to a form that I created stating it's an employer contribution, employee deferral, employee elective deferral, etc. These are saved in a folder. Any prior year stuff I mail a check with the form as well as keep copies for my records. I scan everything in and store it in a OneDrive folder in case my house burns down and IRS needs records of contributions in the future.

I do wonder, however, when Fidelity creates a Roth component with their Self-Employed 401(k), what would be the proper procedure to restate the plan to Fidelity now that it is under a third-party administrator with a trust EIN. Would you simply use the trust EIN when you establish the Fidelity plan? So far MySolo401k has been great responding to my numerous emails. I haven't had a need to call them because nothing has been that urgent. I plan on using them for many years to come.
I opened (2) additional brokerage accounts (2 different corporations), mainly because I was (wrongly) informed by Fidelity reps that I would then be able to easily/directly transfer funds to the appropriate retirement accounts (i401k for one and SEP for the other). On one acct I set-up EFT from the existing business checking account, held at a local CU, and with the other (smaller company), I moved the entire business checking there, with that Fidelity brokerage acct now acting as that business' de facto checking account.

In the end, I'll have to pick up the phone every month and call in these transfers/contributions/deferrals...kinda crazy/silly, in 2024, if you ask me.

Bottomline...setting up these brokerage accounts did little for me, other than move a chunk of money into a MMF bearing greater interest than the CU business checking.

Again, I don't understand the disdain displayed lately for Vanguard, on this board...everything was much more straightforward and streamlined at VG.

As you point out above...I'll just keep a digital and paper folder of these transactions/forms, and create a spreadsheet...sigh.

Oh well...new chapter...new "challenges".

As far as your last question...I don't know the answer...but would assume you could use the now established trust for the restatement, combining pre- and Roth statements, and simply eliminating the after-tax component, during restatement. Seems like MySolo401k could and should answer that possibility , while they're being paid.

-Mark
Your experience is one of the things I am worried about if I try to move to mysolo401k and use Fidelity to manage the investments.

I don't understand the "trust EIN" being spoken about in comments. I have an EIN for myself as sole proprietor but now I need a trust EIN as well?

I am beginning to think that the simplest thing for me is to either leave it with Ascensus, or:

1. Make my contribution for 2024 of $23,000 as employee deferred, forget about any employer contribution for this year
2. Then instruct Vanguard to close my solo 401k and its Roth, and rollover both traditional and Roth solo 401k to Vanguard IRA and Roth IRA.
3. File 5500-ez for closure of solo 401k
4. Wait 12 months, open a solo 401k at Fidelity and not bother with Roth anymore

Can I do this? Am I allowed to make my $23,000 contribution e.g. on June 20th, 2024, and then close the whole solo 401k on e.g. June 27, 2024?

And then on June 28th, 2025, open a solo 401k with Fidelity, and contribute for 2025?

Edited to add: I tried looking at how to "restate" my plan and move to Schwab but after hours on the phone with their expert, anyone who thinks it takes 10 minutes to fill in the forms and move it from Vanguard to Schwab and get all the transfers done must have a PhD in astrofinance
Probably overcomplicating things. I overthought things as well. I wouldn't allow the plan to terminate. Just let MySolo401k do their thing: get a trust set up, trust EIN, and open your accounts at Fidelity if you choose. You may not be able to move things over in time since it's so late in the month. It'll take 3-4 weeks to get everything set up and transfers in-kind to happen.

One thing you can do is let it move to Ascensus, wait for Fidelity to become SECURE 2.0 compliant (they said 2025), and then move it to Fidelity. That would probably be the easiest option. If you don't need plan loans, checkbook control, megabackdoor Roth option, etc. then it's probably the better option for someone that just wants standard cookie cutter pre-tax and Roth components.
Thank you for your help on my questions and posts, it's helpful from someone who has gone down the same route as me, of overthinking it.

Yes, all I really want is a standard plan plus Roth. Even the Roth isn't a dealbreaker. My priorities are only simplicity and cost. I have over $250k so I have to file 5500-EZ. My CPA charged an outrageous amount to file it so I'm planning to do it myself going forward.

So, best course of action is to let it go to Ascensus, wait a year or so, then restate (i.e. transfer) to Fidelity?

In this case, next year Fidelity becomes the trust, so I don't need a trust EIN, like how it is with Vanguard / Ascensus at the moment?
User avatar
southerndoc
Posts: 1336
Joined: Wed Apr 22, 2009 7:07 pm
Location: Atlanta

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

Post by southerndoc »

MySolo401k files the 5500EZ for you as part of their $125/year fee. They do not have access to your accounts so they rely on you reporting information to them (with a form).

You don't need a trust EIN unless you put your plan in a trust. This is not something you do. MySolo401k or Solo401k by Nabers Group will do this for you.

The IRS information is confusing. They say that a Solo 401(k) needs its own EIN, but when I was setting up a plan in 2018 and tried to get an EIN, I was told by the IRS that I could use my business EIN. Who knows if that information was correct, but that's what I did (use my business EIN with Fidelity and Vanguard). I had a Self-Employed 401(k) with Fidelity and then restated the plan to Vanguard to take advantage of the Individual 401(k) Roth component.

One thing to keep in mind is that if you have a Roth component that has money in it, I'm not sure how the plan would be if you restate the plan to a custodian who does not have a Roth component (like Fidelity). Maybe someone with more experience could comment if the Roth component can be rolled into a Roth IRA or what needs to happen with it if you move it to a custodian that doesn't offer a Roth Solo 401(k).
keyfort
Posts: 384
Joined: Thu Apr 04, 2019 12:46 pm

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

Post by keyfort »

southerndoc wrote: Sun Jun 16, 2024 6:45 pm MySolo401k files the 5500EZ for you as part of their $125/year fee. They do not have access to your accounts so they rely on you reporting information to them (with a form).

You don't need a trust EIN unless you put your plan in a trust. This is not something you do. MySolo401k or Solo401k by Nabers Group will do this for you.

The IRS information is confusing. They say that a Solo 401(k) needs its own EIN, but when I was setting up a plan in 2018 and tried to get an EIN, I was told by the IRS that I could use my business EIN. Who knows if that information was correct, but that's what I did (use my business EIN with Fidelity and Vanguard). I had a Self-Employed 401(k) with Fidelity and then restated the plan to Vanguard to take advantage of the Individual 401(k) Roth component.

One thing to keep in mind is that if you have a Roth component that has money in it, I'm not sure how the plan would be if you restate the plan to a custodian who does not have a Roth component (like Fidelity). Maybe someone with more experience could comment if the Roth component can be rolled into a Roth IRA or what needs to happen with it if you move it to a custodian that doesn't offer a Roth Solo 401(k).
Oh, I meant that with a prototype plan, I assume then that Fidelity / Vanguard is the trust, which is why we don't need to get an EIN for a trust. It seems that the only point of having an EIN for the solo 401k trust is when you need to it to open non-prototype investment accounts at Fidelity, for example when you go with mysolo401k for a non prototype plan. Which you wouldn't do if you open a solo 401k directly with Fidelity themselves.

Looking to the future, I'm thinking of just having a solo 401k at Fidelity directly. So I can either leave Ascensus as it is till next year and then transfer to Fidelity, or close my current solo 401k, rollover to a Vanguard IRA and Roth IRA, and then open a new solo 401k at Fidelity next year after 12 months have passed.
buldogge
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by buldogge »

Interesting development this AM...

After speaking with at least a dozen phone and B&M Fidelity agents, over the last 2 weeks, I landed on a gentleman this morning, who informed me that the administration for the non-prototype accounts will occur from a separate trustee log-in, and not my personal log-in.

I don't know how many times I asked them about the difference of no "small biz" log-in, and specifically how I was supposed to administer these accounts!

A little off-putting, to be sure.

This call started when I went to invest in mutual funds, with the deposited Vanguard $, and was unable to do so...accounts don't even populate the trade screen.

So...Separate log-in created, as the trustee, can now trade, as necessary, on the (6) non-prototype sub accounts (myself and spouse). The separate log-in is created using the last (4) digits of your 'G' number, as opposed to your SS#.

Still have to call in on the phone to make the contributions/deferrals, though...sigh.

-Mark in St. Louis
Wrench
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by Wrench »

buldogge wrote: Mon Jun 17, 2024 11:59 am Interesting development this AM...

After speaking with at least a dozen phone and B&M Fidelity agents, over the last 2 weeks, I landed on a gentleman this morning, who informed me that the administration for the non-prototype accounts will occur from a separate trustee log-in, and not my personal log-in.

I don't know how many times I asked them about the difference of no "small biz" log-in, and specifically how I was supposed to administer these accounts!

A little off-putting, to be sure.

This call started when I went to invest in mutual funds, with the deposited Vanguard $, and was unable to do so...accounts don't even populate the trade screen.

So...Separate log-in created, as the trustee, can now trade, as necessary, on the (6) non-prototype sub accounts (myself and spouse). The separate log-in is created using the last (4) digits of your 'G' number, as opposed to your SS#.

Still have to call in on the phone to make the contributions/deferrals, though...sigh.

-Mark in St. Louis
Yes, but if you are trustee and so instruct them, they can add it to your personal Fidelity account with transact rights. They did that for me for both my Non-Prototype accounts and my spouse's. I use mobile deposit for contributions. Works fine and is credited same day. No calls necessary.

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

Post by earflop »

earflop wrote: Fri Apr 26, 2024 12:14 pm Conventional wisdom is that Schwab requires you to mail a check to make Solo 401(k) contributions but has anyone tried it recently?

I'm looking at their Contribution Transmittal Form (https://www.schwab.com/resource/contrib ... ittal-form) and Section 2 says:

For internal transfers (journals) please provide the delivering account number. _______________________

This implies that you can put in a linked Schwab brokerage or checking account number and they will journal funds between the accounts.

Has anyone tried this?
Since no one responded, I went ahead and did this myself and I can report success. I asked Schwab to "journal" money from a linked brokerage account and uploaded the form via secure messaging. I submitted the form midday Friday and the transfer went through around midday today.
buldogge
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by buldogge »

Wrench wrote: Mon Jun 17, 2024 1:17 pm Yes, but if you are trustee and so instruct them, they can add it to your personal Fidelity account with transact rights. They did that for me for both my Non-Prototype accounts and my spouse's. I use mobile deposit for contributions. Works fine and is credited same day. No calls necessary.

Wrench
They can add what, EFT capability? (specifically listed as not available for i401k accounts, BTW)

The non-prototype accounts already appear in my personal log-in, if that's what you are referring to...no way to interact with them, though.

Also, I have my spouse's i401k sub-accounts to worry about.

I now have access to all (6) of them, but no way to link an outside (or other fidelity) account to simply initiate electronic transfers.

As mentioned, I went thru the trouble of moving my business' checking account to a Fidelity corporate brokerage, and they are claiming I can't just make direct transactions from that...these Fidelity brokerage accounts have a routing# and (checking) account#, so, by what you are saying, it should be do-able...but...

Again, getting information/reliable help at Fidelity has been a crap-shoot, so far.

If you have linked an outside account, to your trustee log-in portfolio/account, and are able to electronically transact to your non-prototype sub-accounts, then please do describe the process you went thru.

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

Post by Wrench »

buldogge wrote: Mon Jun 17, 2024 2:23 pm
Wrench wrote: Mon Jun 17, 2024 1:17 pm Yes, but if you are trustee and so instruct them, they can add it to your personal Fidelity account with transact rights. They did that for me for both my Non-Prototype accounts and my spouse's. I use mobile deposit for contributions. Works fine and is credited same day. No calls necessary.

Wrench
They can add what, EFT capability? (specifically listed as not available for i401k accounts, BTW)

The non-prototype accounts already appear in my personal log-in, if that's what you are referring to...no way to interact with them, though.

Also, I have my spouse's i401k sub-accounts to worry about.

I now have access to all (6) of them, but no way to link an outside (or other fidelity) account to simply initiate electronic transfers.

As mentioned, I went thru the trouble of moving my business' checking account to a Fidelity corporate brokerage, and they are claiming I can't just make direct transactions from that...these Fidelity brokerage accounts have a routing# and (checking) account#, so, by what you are saying, it should be do-able...but...

Again, getting information/reliable help at Fidelity has been a crap-shoot, so far.

If you have linked an outside account, to your trustee log-in portfolio/account, and are able to electronically transact to your non-prototype sub-accounts, then please do describe the process you went thru.

TIA
-Mark
That is correct - I saw them too but could not transact. By contacting Fidelity they added transact rights for all three of my accounts. When they added my spouses accounts to my personal account they included transact rights on them initially. To make it happen, I contacted them through the secure messaging system online and was put in touch with a very helpful person who called me and made it all happen. Took a couple days because it had to be done "in the back office" not by her. Once you have transact rights you can buy any stocks or bonds just like your regular Fidelity brokerage accounts. At least as far as I can tell. I did successfully purchase an ETF with my first contribution. I don't know about transfers from other Fidelity accounts, business or otherwise. Haven't explored that as I don't need it.

I share your frustration - none of this has been easy or straightforward. At least for me, staying on it got me to a situation that is reasonably easy to deal with. Hope you can end up there too.

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

Post by buldogge »

Wrench wrote: Mon Jun 17, 2024 3:55 pm That is correct - I saw them too but could not transact. By contacting Fidelity they added transact rights for all three of my accounts. When they added my spouses accounts to my personal account they included transact rights on them initially. To make it happen, I contacted them through the secure messaging system online and was put in touch with a very helpful person who called me and made it all happen. Took a couple days because it had to be done "in the back office" not by her. Once you have transact rights you can buy any stocks or bonds just like your regular Fidelity brokerage accounts. At least as far as I can tell. I did successfully purchase an ETF with my first contribution. I don't know about transfers from other Fidelity accounts, business or otherwise. Haven't explored that as I don't need it.

I share your frustration - none of this has been easy or straightforward. At least for me, staying on it got me to a situation that is reasonably easy to deal with. Hope you can end up there too.

Wrench

I have transact capability on all the accounts, as we speak...but...I need/want to create the ability to transact electronically from the brokerage account (or if need be, I'd close that and go to my local CU, with a new business checking account).

Sounds like you have EFT set up to an outside bank, and the funds are made available to trade as soon as the transaction is initiated, and then you are choosing which funds to buy from that transaction. That would be fine, if I could treat a transfer from the fidelity account like an EFT from any other bank.

I see from your earlier post that you are using mobile check deposit. Is this a personal checking account, and self-employed set-up. I'm dealing with business brokerage/checking and S-Corp...but don't see why that would make any difference. Perhaps if I create, if allowed, a separate Fidelity app log-in and mobile deposit from the corporate brokerage (though writing the check is only slightly less annoying than calling in).

Who knows...

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

Post by Wrench »

buldogge wrote: Mon Jun 17, 2024 5:03 pm <SNIP>

I have transact capability on all the accounts, as we speak...but...I need/want to create the ability to transact electronically from the brokerage account (or if need be, I'd close that and go to my local CU, with a new business checking account).

Sounds like you have EFT set up to an outside bank, and the funds are made available to trade as soon as the transaction is initiated, and then you are choosing which funds to buy from that transaction. That would be fine, if I could treat a transfer from the fidelity account like an EFT from any other bank.

I see from your earlier post that you are using mobile check deposit. Is this a personal checking account, and self-employed set-up. I'm dealing with business brokerage/checking and S-Corp...but don't see why that would make any difference. Perhaps if I create, if allowed, a separate Fidelity app log-in and mobile deposit from the corporate brokerage (though writing the check is only slightly less annoying than calling in).

Who knows...

-Mark
No, I cannot use ACH into the non-prototype accounts from other accounts within Fidelity - I don't think Fidelity supports that. I believe sotherndoc has reported he can ACH by pushing from a BoA account into the non-protoype accounts, so setting up a business account at your local CU might be the way to go. But my business checking account does not support ACH to other banks/brokerages (at least without extra fees). So I do mobile check deposit: write a check on my business checking account to Fidelity Brokerage LLC, then do mobile deposit from the Fidelity app on my phone into the appropriate non-prototype account. This is fast and easy. Only hassle is printing the check, but I can deal with that because I don't do it that often.

Wrench
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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 »

Bank of America Business Checking charges me $1 for a 3-business day transaction and $5 for a 1-business day transaction. I do the 3 business day one and figure 68c for a stamp + another 50c for an envelope that I'm actually better doing it electronically. I have BofA set up to automatically contribute my employee deferrals (pre-tax and Roth). I mail a physical check for employer contributions or prior-year contributions.

What website did you use and how did you register for the trustee accounts? I can buy/sell stocks/funds/ETFs from my personal Fidelity login.
buldogge
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by buldogge »

southerndoc wrote: Mon Jun 17, 2024 7:00 pm Bank of America Business Checking charges me $1 for a 3-business day transaction and $5 for a 1-business day transaction. I do the 3 business day one and figure 68c for a stamp + another 50c for an envelope that I'm actually better doing it electronically. I have BofA set up to automatically contribute my employee deferrals (pre-tax and Roth). I mail a physical check for employer contributions or prior-year contributions.

What website did you use and how did you register for the trustee accounts? I can buy/sell stocks/funds/ETFs from my personal Fidelity login.
The inconsistencies with Fidelity are mind-boggling TBH.

I was on the phone with the rep, and created a new log-in on the standard Fidelity.com website > log-in > sign up > USE LAST 4 DIGITS OF G NUMBER, INSTEAD OF LAST 4 OF SS#, here > create new user name and password. This will equal a new trustee account/log-in.

There is ZERO way (also confirmed by the phone rep) to trade via my personal log-in, in regards to these non-prototype acts...hence the creation of the trustee log-in, at his direction/insistence.

How is it possible that the basic functions of these accounts could differ between (2) clients?!?

BTW...I just (finally) left BOA, after 38 years (including the gobbling up of Boatmen's Bank, and then Nations Bank)...I will either call-in or write a check from the Fidelity brokerage acct, if mobile deposit can be "activated".

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

Post by buldogge »

Wrench wrote: Mon Jun 17, 2024 5:56 pm No, I cannot use ACH into the non-prototype accounts from other accounts within Fidelity - I don't think Fidelity supports that. I believe sotherndoc has reported he can ACH by pushing from a BoA account into the non-protoype accounts, so setting up a business account at your local CU might be the way to go. But my business checking account does not support ACH to other banks/brokerages (at least without extra fees). So I do mobile check deposit: write a check on my business checking account to Fidelity Brokerage LLC, then do mobile deposit from the Fidelity app on my phone into the appropriate non-prototype account. This is fast and easy. Only hassle is printing the check, but I can deal with that because I don't do it that often.

Wrench
What was the procedure for enabling the ability to use mobile check deposit with the non-prototype accounts?...this function, within my app, does not include these accounts.

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

Post by southerndoc »

buldogge wrote: Mon Jun 17, 2024 8:56 pm
southerndoc wrote: Mon Jun 17, 2024 7:00 pm Bank of America Business Checking charges me $1 for a 3-business day transaction and $5 for a 1-business day transaction. I do the 3 business day one and figure 68c for a stamp + another 50c for an envelope that I'm actually better doing it electronically. I have BofA set up to automatically contribute my employee deferrals (pre-tax and Roth). I mail a physical check for employer contributions or prior-year contributions.

What website did you use and how did you register for the trustee accounts? I can buy/sell stocks/funds/ETFs from my personal Fidelity login.
The inconsistencies with Fidelity are mind-boggling TBH.

I was on the phone with the rep, and created a new log-in on the standard Fidelity.com website > log-in > sign up > USE LAST 4 DIGITS OF G NUMBER, INSTEAD OF LAST 4 OF SS#, here > create new user name and password. This will equal a new trustee account/log-in.

There is ZERO way (also confirmed by the phone rep) to trade via my personal log-in, in regards to these non-prototype acts...hence the creation of the trustee log-in, at his direction/insistence.

How is it possible that the basic functions of these accounts could differ between (2) clients?!?

BTW...I just (finally) left BOA, after 38 years (including the gobbling up of Boatmen's Bank, and then Nations Bank)...I will either call-in or write a check from the Fidelity brokerage acct, if mobile deposit can be "activated".

-Mark
Please see this thread from My Solo 401k Financial: https://mysolo401k.net/mycommunity/foru ... y-account/

I forgot that I had to do that. My accounts are in my personal dashboard. I used the customize function on the dashboard to change the names (Solo 401k Pre-Tax and Solo 401k Roth) and then grouped them in the retirement category. They both show up under that category and the category header has the total between them. I can make trades using my personal profile.

Once you set it up to be in your personal profile, you can then use mobile deposit from the Fidelity app using your personal login.

Are you calling the general Fidelity number? They have a team dedicated to non-prototype retirement accounts. Give them a call: (800)544-5373. Their hours are 8 am-8:30 pm M-F EDT.
buldogge
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by buldogge »

southerndoc wrote: Mon Jun 17, 2024 9:41 pm
Please see this thread from My Solo 401k Financial: https://mysolo401k.net/mycommunity/foru ... y-account/

I forgot that I had to do that. My accounts are in my personal dashboard. I used the customize function on the dashboard to change the names (Solo 401k Pre-Tax and Solo 401k Roth) and then grouped them in the retirement category. They both show up under that category and the category header has the total between them. I can make trades using my personal profile.

Once you set it up to be in your personal profile, you can then use mobile deposit from the Fidelity app using your personal login.

Are you calling the general Fidelity number? They have a team dedicated to non-prototype retirement accounts. Give them a call: (800)544-5373. Their hours are 8 am-8:30 pm M-F EDT.
That MySolo401k thread covers exactly what I described, earlier...just create a log-in with your G number...then combine it with your "personal" log-in, if you want...but that is not my main concern.

Having said that, if combining them allows me to access the funds, from a trade perspective, via the app (ie mobile deposit) then I will undertake it.

Guess I'll spend some more quality time, with a Fidelity rep, tomorrow morning.

I have been calling the small retirement specific #...the same one that you listed.

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

Post by southerndoc »

buldogge wrote: Mon Jun 17, 2024 10:43 pm
southerndoc wrote: Mon Jun 17, 2024 9:41 pm
Please see this thread from My Solo 401k Financial: https://mysolo401k.net/mycommunity/foru ... y-account/

I forgot that I had to do that. My accounts are in my personal dashboard. I used the customize function on the dashboard to change the names (Solo 401k Pre-Tax and Solo 401k Roth) and then grouped them in the retirement category. They both show up under that category and the category header has the total between them. I can make trades using my personal profile.

Once you set it up to be in your personal profile, you can then use mobile deposit from the Fidelity app using your personal login.

Are you calling the general Fidelity number? They have a team dedicated to non-prototype retirement accounts. Give them a call: (800)544-5373. Their hours are 8 am-8:30 pm M-F EDT.
That MySolo401k thread covers exactly what I described, earlier...just create a log-in with your G number...then combine it with your "personal" log-in, if you want...but that is not my main concern.

Having said that, if combining them allows me to access the funds, from a trade perspective, via the app (ie mobile deposit) then I will undertake it.

Guess I'll spend some more quality time, with a Fidelity rep, tomorrow morning.

I have been calling the small retirement specific #...the same one that you listed.

-Mark
You are the administrator/trustee of your own plan now. There will be work involved for sure.
buldogge
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by buldogge »

southerndoc wrote: Tue Jun 18, 2024 12:23 am
You are the administrator/trustee of your own plan now. There will be work involved for sure.
I was the administrator of my plan already...including filing 5500-EZ via EFAST2. Being the trustee won't change much, nor does it negate Fidelity's lack of small biz features.

Obviously, a new system is going to take some getting used to...but...one would be hard pressed to argue that Fidelity's small business set-up is not inferior to Vanguard's (R.I.P.). Having a more modern looking website/interface is pointless if the underlying mechanics aren't present.

-Small business log-in with administrative functions all in one place (for multiple plans)
-Linked to business banking account(s), and electronic transfer of funds for deferrals/contributions.
-Delineation of employEE and employER deferrals and contributions.

Of course, it's all a moot point, seeing as Vanguard isn't interested in our business, any longer.

I'll be just fine...doesn't mean Fidelity shouldn't fix their issues.

Extra hoops to jump thru, and an extra spreadsheet...oh well.

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

Post by southerndoc »

Some of what you want is available with Fidelity's prototype Self-Employed 401(k) plan. You're now using a non-prototype plan which requires more record keeping on your part and less features available from Fidelity.

Hang in there. I've been very happy with MySolo401k and my non-prototype plans.
GoldenBear17
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Re: Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

Post by GoldenBear17 »

southerndoc wrote: Tue Jun 18, 2024 1:24 am Some of what you want is available with Fidelity's prototype Self-Employed 401(k) plan. You're now using a non-prototype plan which requires more record keeping on your part and less features available from Fidelity.

Hang in there. I've been very happy with MySolo401k and my non-prototype plans.
If MySolo401k sets up your Solo 401(k) plan under a new trust EIN that they create, and not under the EIN of your sole proprietorship (which is the EIN that you use on Schedule C on taxes), then can you still report your contributions to the Solo 401(k) on your personal taxes the same way as when the plan was directly under your business EIN? Or now do you have to do some kind of separate tax reporting in a separate filing each year for the new trust with its new EIN? If the latter, that would seem to introduce an enormous new hassle.
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