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TD Ameritrade Solo 401Ks-Should i stay or should I go now?

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  • TD Ameritrade Solo 401Ks-Should i stay or should I go now?

    Wanted to know if people will change their funds to cont the free ETfs, pay for the transaction fee or use another vendor and if so-which one?

    I never liked the website layout and am thinking to transferring funds to Vanguard. I already have my backdoor Roth there and it is easier for me to do just Vanguard funds than research other ones.


    What are you plans?

  • #2
    I dont plan to do anything. I only have an hsa and one taxable there (trying out their software). When worrying about specific funds people should remember there are several funds of different tickers that are exactly the same. No need to marry some company. Also, transaction fees are still low and shouldnt be a friction worth changing.

    Otoh, I agree their front page and how they show basis, gain, so off its as if someone said..."its too easy to calculate gains and display understandably, lets put in the work to  make this confusing as possible". Thats worth it.


    • #3
      You should be aware of three disadvantages to Vanguard's Individual 401k:

      1. The do not allow Admiral shares, only investor shares. For TSM this is 0.04% vs. 0.15%. Vanguard ETFs always have the same expense ratios as Admiral shares.

      2. They do not allow rollover contributions, but TD Ameritrade does,

      3. They do not allow employee eligibility restrictions. TD Ameritrade allows (assuming you selected), One year service and 1,000 hours/year minimum service requirements and a >= age 21 requirement.

      Another possible option is Fidelity's Self-Employed 401k. Most of their Premium Class index funds have expense ratios <= Vanguard Admiral Shares, which they do allow you to buy in their Self-Employed 401k. Fidelity does allow rollover contributions and employee eligibility restrictions, but dos not have Roth 401k accounts.


      • #4
        Does Vanguard allow Roth Solo/Individual 401k's?


        • #5


          • #6
            I like Vanguard plan, but there are two very real downsides- no rollovers into the plan and you can't use admiral/ETF shares, only the higher cost investor shares. Otherwise, it's perfect for me.
            Helping those who wear the white coat get a fair shake on Wall Street since 2011


            • #7
              If I remember correctly, your daughter is an employee of WCI. The day she was hired made you ineligible for Vanguard's Individual 401k.

              From Vanguard's Individual 401k adoption agreement and instructions.

              Section two: Eligibility
              There will be no age and service requirements under this Plan.

              Please note that you can’t establish this plan if you employ others, including children or part-time employees.

              This applies to both the establishment and operation of the plan.


              • #8
                Can you easily rollover a Vanguard Roth/Trad i401k into say Schwab or TDA?