Solo 401K and 401KBrokers.com

Mysto · 10-24-2006, 07:16 AM

I'm considering setting up a solo 401k - I currently have a SEP. This is my last full earning year and based on my calculations I should be able to put almost all of 06 earnings in the solo401K. I found 401kbrokers.com on the web and they claim - no setup charges and only .25 maint fee invested in Vanguard funds. What a deal! Anyone use them or know anything about them?

BTW - Can you roll a solo 401k into a standard IRA account after retirement?

**Martha** · 10-24-2006, 09:31 AM

I don't know anything about the 401k provider, but you can do a rollover after you retire into an IRA.

MasterBlaster · 10-24-2006, 09:42 AM

Please enlighten me !

Why would you want to do a Solo 401k rather than a SEP IRA? The contribution limits are the same.

What are the differences. Are there any advantages to the Solo 401k ?

**Martha** · 10-24-2006, 09:47 AM

Quote:

Originally Posted by MasterBlaster

Please enlighten me !

Why would you want to do a Solo 401k rather than a SEP IRA? The contribution limits are the same.

What are the differences. Are there any advantages to the Solo 401k ?

http://early-retirement.org/forums/i...89029#msg89029

Mysto · 10-24-2006, 11:24 AM

Thanks for the info Martha.

I am proceeding on setting this up. If my calculations are correct I will be able to move enough into qualified funds to get my taxes to 0 within 2 more years.

Free at Last!

brewer12345 · 10-24-2006, 11:44 AM

FWIW< when I set one of these up with Fido, they charged me nothing. Once it was set up, I got the standard fee structure like any Fido brokerage account.

perinova · 10-24-2006, 01:27 PM

I used Fido as well for solo 401k. No problem. Easy to set-up.

Remember that for solo 401k you also have a contribution limit of 25% of total compensation if you are incorporated! so you will be paying some taxes unless you will have only about $25K of earnings to distribute for the year.
The contribution limit if your are NOT incorporated is 20% of compensation.

Mysto · 10-24-2006, 02:03 PM

Thanks Brewer for info on Fido. I am going to talk with them tomorrow.
Now I have to analyze their funds to see what index is best xfered from my Vanguard portfolio.

So little time, so much to learn!!!

And perinova - I know I will pay some tax this year - I'm setting up for no taxes at ER. (still $20,000 + 20% is a lot) Thanks.

LRAO · 10-24-2006, 06:25 PM

I also used Fidelity as well for my solo 401(k).

It helped that there is a Fidelity branch 2 minutes away from my business.

Vincenzo · 10-24-2006, 07:45 PM

For whatever it's worth, I have a Solo 401k with T. Rowe Price. Very happy.

brewer12345 · 10-24-2006, 08:18 PM

Quote:

Originally Posted by Mysto

Thanks Brewer for info on Fido. I am going to talk with them tomorrow.
Now I have to analyze their funds to see what index is best xfered from my Vanguard portfolio.

Fido has some cheap index funds, but you can also buy a VG ETF through Fido's solo 401k. I am a dedicated stock picker, so I buy individual stocks through the solo 401k (although the entire account is in one stock at the moment).

FinanceDude · 10-25-2006, 10:05 AM

Fido to me is an enigma..............they brand themselves as a "no-load" company, yet 60% of their sales is through brokers.

Plus, they keep calling me and bugging me to sell their Fidelity Advisor Funds, which to me are no big deal...........

10-24-2006, 07:16 AM	#1
Mysto Recycles dryer sheets Join Date: Mar 2006 Posts: 171	Solo 401K and 401KBrokers.com I'm considering setting up a solo 401k - I currently have a SEP. This is my last full earning year and based on my calculations I should be able to put almost all of 06 earnings in the solo401K. I found 401kbrokers.com on the web and they claim - no setup charges and only .25 maint fee invested in Vanguard funds. What a deal! Anyone use them or know anything about them? BTW - Can you roll a solo 401k into a standard IRA account after retirement? __________________ I'm trying to find myself.* Have you seen me anywhere today?

10-24-2006, 09:31 AM	#2
Martha Administrator Join Date: Feb 2004 Location: minnesota Posts: 9,848	Re: Solo 401K and 401KBrokers.com I don't know anything about the 401k provider, but you can do a rollover after you retire into an IRA. __________________ . Do not rely on the information provided--my posts are not to be taken as legal advice. Needless to say you must consult with your legal representative. I am not responsible for errors. If I offended you with cya I apologize. If I did not, I tried.

10-24-2006, 09:42 AM	#3
MasterBlaster Thinks s/he gets paid by the post Join Date: Jun 2005 Posts: 1,777	Re: Solo 401K and 401KBrokers.com Please enlighten me ! Why would you want to do a Solo 401k rather than a SEP IRA? The contribution limits are the same. What are the differences. Are there any advantages to the Solo 401k ?

10-24-2006, 11:24 AM	#5
Mysto Recycles dryer sheets Join Date: Mar 2006 Posts: 171	Re: Solo 401K and 401KBrokers.com Thanks for the info Martha. I am proceeding on setting this up. If my calculations are correct I will be able to move enough into qualified funds to get my taxes to 0 within 2 more years. Free at Last! __________________ I'm trying to find myself.* Have you seen me anywhere today?

10-24-2006, 11:44 AM	#6
brewer12345 Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Mar 2003 Posts: 9,248	Re: Solo 401K and 401KBrokers.com FWIW< when I set one of these up with Fido, they charged me nothing. Once it was set up, I got the standard fee structure like any Fido brokerage account. __________________ “When you realize that you are one of the rare few who observe moral principles in their relationships with others, there is a temptation to sink into amorality, not out of conviction or pleasure but simply to avoid further pain, because there is no greater suffering than being an angel in hell, whereas a devil feels at home wherever he goes.” – Martin Page, How I Became Stupid

10-24-2006, 01:27 PM	#7
perinova Recycles dryer sheets Join Date: Apr 2006 Posts: 398	Re: Solo 401K and 401KBrokers.com I used Fido as well for solo 401k. No problem. Easy to set-up. Remember that for solo 401k you also have a contribution limit of 25% of total compensation if you are incorporated! so you will be paying some taxes unless you will have only about $25K of earnings to distribute for the year. The contribution limit if your are NOT incorporated is 20% of compensation.

10-24-2006, 02:03 PM	#8
Mysto Recycles dryer sheets Join Date: Mar 2006 Posts: 171	Re: Solo 401K and 401KBrokers.com Thanks Brewer for info on Fido. I am going to talk with them tomorrow. Now I have to analyze their funds to see what index is best xfered from my Vanguard portfolio. So little time, so much to learn!!! And perinova - I know I will pay some tax this year - I'm setting up for no taxes at ER. (still $20,000 + 20% is a lot) Thanks. __________________ I'm trying to find myself.* Have you seen me anywhere today?

10-24-2006, 06:25 PM	#9
LRAO Recycles dryer sheets Join Date: Aug 2004 Posts: 79	Re: Solo 401K and 401KBrokers.com I also used Fidelity as well for my solo 401(k). It helped that there is a Fidelity branch 2 minutes away from my business.

10-24-2006, 07:45 PM	#10
Vincenzo Dryer sheet wannabe Join Date: Feb 2005 Posts: 24	Re: Solo 401K and 401KBrokers.com For whatever it's worth, I have a Solo 401k with T. Rowe Price. Very happy.

10-25-2006, 10:05 AM	#12
FinanceDude Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Aug 2006 Posts: 7,411	Re: Solo 401K and 401KBrokers.com Fido to me is an enigma..............they brand themselves as a "no-load" company, yet 60% of their sales is through brokers. Plus, they keep calling me and bugging me to sell their Fidelity Advisor Funds, which to me are no big deal........... __________________ Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:) President Obama, please know that I will continue to cling to my guns and religion........:)

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