Vanguard Now Allowing IRA Rollovers into its Solo 401(k)s

[The White Coat Investor]

It's about time, but it's a welcome change nonetheless.

https://www.bogleheads.org/forum/vie...?f=10&t=340590

[Larry Ragman]

They are also rolling out a new platform for their employer site, so maybe they are starting to respond to all the customer service issues across the board.

[CordMcNally]

Welcome to the new millennium, Vanguard!

[Lithium]

If you still can't roll another 401k into their solo 401k, Vanguard remains worst in class. Most of us know better than to have tIRAs anyway.

[runfast00]

About 2 years ago I started a SD401k with E*TRADE through mysolo401k. I’m quite happy with the ability to do post tax Roth conversions.

Will someone post if they find vanguard allows mysolo401k to do this as well as roll-overs?

[runfast00]

The original bogleheads thread was folded into this one:

[Tangler]

I wonder why they did not offer that feature from the start? Makes no sense? I love VG by the way, just don't get some of the behavior. I would think they would want money to come in?

[Dicast]

I left vanguard for this very reason 5 years ago. I needed to set up a rollover to close out a SEP IRA and it just didn't work with Vanguard. You'd think they would have always wanted that money.

[snowcanyon]

Has anyone confirmed this?
Are they offering admiral shares in their solos now?
Any updates?
When can we expect the big announcement?

[spiritrider]

I have no specific knowledge about the rollover issue.

However, Vanguard started offering Admiral Shares in their Individual 401k more than two years ago. They did this in response to Fidelity changing to a single share class at the lowest ER and eliminating investment minimums.

Now if we could only get Fidelity to offer designated Roth accounts and direct electronic contributions in their Self-Employed 401k.

[notanotherusername]

I have no specific knowledge about the rollover issue.

However, Vanguard started offering Admiral Shares in their Individual 401k more than two years ago. They did this in response to Fidelity changing to a single share class at the lowest ER and eliminating investment minimums.

Now if we could only get Fidelity to offer designated Roth accounts and direct electronic contributions in their Self-Employed 401k.

I have non-prototype solo 401k with Fidelity and they do accept incoming wires with no charge. I have enough $ with my bank that they do not charge for the outgoing wire so I have been able to wire contributions at no cost to my pre-tax and after-tax accounts at Fidelity at no cost.

[Madman]

I sent a message to Vanguard last week regarding this and got a response today. I have Rollover IRA (with Vanguard) that I want to move into my individual 401k. This is what they said...

At this time the Vanguard Individual 401(k) Adoption Agreement still does not permit rollovers into Vanguard Individual 401(k) plans. However, other “Individual” 401(k) assets or “Individual” Profit Sharing Plan assets can be moved into the Vanguard Individual 401(k) via asset transfer. The term “individual” for this purpose means other retirement plans that are operated by sole proprietors or partners in business (or their spouses); and they cannot have common law employees.

An employer sponsored retirement plan that doesn’t meet the definition of an “individual” 401(k) or profit sharing plan cannot be moved into the Vanguard Individual 401(k). Other retirement plans such as traditional, rollover, Roth, SIMPLE, and SEP-IRAs also cannot be moved into a Vanguard Individual 401(k) plan.

If you have additional questions, we can be reached at:
https://support.vanguard.com/

[snowcanyon]

Thanks Madman. Guess it's not really the case. Disappointing. When I retire, I guess I'll have to move everything retirement-related to Fidelity. Too bad.

[spiritrider]

Whoever reported this on Bogleheads must not have understood the difference between a rollover and a trustee -> trustee transfer.

When you amend a one-participant 401k to a new provider. You must move assets by a trustee -> trustee transfer. Vanguard allows this with their Individual 401k and as indicated by their response still does not allow incoming rollovers.

[ENT Doc]