Solo 401K and 401KBrokers.com

[Mysto]

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]

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

 

[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 ?

 

[Martha]

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/index.php?topic=5074.msg89029#msg89029

 

[Mysto]

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]

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]

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]

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]

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]

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

 

[brewer12345]

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]

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...........