Recommendation for Solo 401(k)

[endo4jc]

I've had my E*Trade Roth and Traditional solo 401(k) for approximately a year and a half. I am able to max the employee and employer contributions yearly. I chose to open my accounts with E*Trade due to the ability to have a Roth 401(k). There is a glaring issue with E*Trade that is yet to be resolved. I have spoken with multiple Tax and Retirement Team representatives at E*Trade and there is no solution.

It is impossible to label a contribution as an employEE contribution. In 2019, I contributed entire employEE contribution as a lump sum, and the empoloyER contribution over three transactions. E*Trade doesn't have the ability to distinguish between EE and ER so it is automatically assumed to be employER. Once I hit $37,500 (max 2020 employER contribution) I had to send an ACH transfer from my bank to E*Trade for the remainder. It wasn't until 2021 that I realized the E*Trade rep didn't properly correct their mistake and get the labeling corrected.

Fast forward to 2021, and an E*Trade Tax and Retirement rep (not a general customer service rep) gives me instructions on how to mail in a paper check for my 2021 employEE deferrals with all the instructions (write account number and clearly label it is an employEE contribution). The first two checks I send in both get entered as an employER contribution, and I have to call E*Trade and tell them to correct this.

It's a waste of time to have to deal with this, and I am going to look into transferring my solo 401(k) elsewhere. Any recommendations for another company that can manage this???

[jacoavlu]

Vanguard - no rollover
Fidelity - no Roth
Schwab - no Roth

TDA ?

[endo4jc]

Vanguard - no rollover
Fidelity - no Roth
Schwab - no Roth

TDA ?

Do you have any personal experience with any of these other companies individual 401(k)?

I'd like to avoid a similar experience where I cannot do something as simple as get the contribution type correct.

[jacoavlu]

Do you have any personal experience with any of these other companies individual 401(k)?

I'd like to avoid a similar experience where I cannot do something as simple as get the contribution type correct.

no

your report re Etrade has been reported by others as well.

if you need Roth you only have two choices. I'd give TDA a try if the Etrade issue is that big of a deal to you

[GasFIRE]

If you need both traditional and Roth 401k options, TD Ameritrade has both available but doesn’t have in-plan Roth Rollovers like ETrade.

[endo4jc]

If you need both traditional and Roth 401k options, TD Ameritrade has both available but doesn’t have in-plan Roth Rollovers like ETrade.

I used the Roth 401k for my transition year from fellowship to attending. I don't plan on using it again unless I have a low income year. What exactly is an "in-plan Roth Rollover"?

[endo4jc]

no

your report re Etrade has been reported by others as well.

if you need Roth you only have two choices. I'd give TDA a try if the Etrade issue is that big of a deal to you

E*Trade has been otherwise simple. I just buy VTSAX and VTIAX. It's just become a monthly hassle to deal with this issue that they have seemingly no plan to correct.

[jacoavlu]

E*Trade has been otherwise simple. I just buy VTSAX and VTIAX. It's just become a monthly hassle to deal with this issue that they have seemingly no plan to correct.

deposit less frequently?

[xraygoggles]

Schwab has traditional solo 401k, and I have had no issues getting the contributions correct. You do need to call them to contribute, it can't be done online.

[GasFIRE]

I used the Roth 401k for my transition year from fellowship to attending. I don't plan on using it again unless I have a low income year. What exactly is an "in-plan Roth Rollover"?

ETrade let’s you convert traditional to Roth directly in-plan including employER contributions. Most plans typically don’t have this provision. Probably not useful for those in high tax brackets, maybe in a low income year.