![]() ![]() I truly recognize what Financeguy says – that borrowing from a 401k is probably a dumb idea for most, however in my situation it is either that or try to get a commercial loan 8%+ to expand my business. This way your not using their plan document. The only way to avoid having to open up a new plan and transfer the old is to have your own custom Plan and Trust which allows you to invest your money in any mutual fund company. In other words you can’t sponsor more then one Plan. ![]() So if you want your money with T.Rowe as an example, you literally have to fill out a new prototype document (keeping the provisions identical) and then move the entire assets over to the new vendor. The Plan Trust in most cases will not allow you to invest in other institutions mutual funds (unless your plan is with a discount brokerage outfit). By doing this, you are obligated to invest “all” your money with that institution. ![]() The whole idea for these large institutions to attract your 401(k) business is to provide you with a “free” prototype Plan Document and Trust. Rowe, but you must be careful on how you do this. You certainly can move from Oppenheimer to T. Just to clarify something on moving your 401(k) from one vendor to another. As I own both, I’ve become a total fan of solo 401ks due to the ease with which one can contribute money. PS I have several posts comparing SEPs to solo 401ks on my blog. #TURBOTAX DISCOUNT CODE T ROWE PRICE DOWNLOAD#I liked them both and they both download into Quicken. In the past I had heard of some administrators who charge $100 per year, but that’s not too bad compared to $35 dollar administration fees some corporate 401k providers charge their account holders annually. Individual / Solo 401ks were designed to be easy to administer (my brokers do all the work for no extra charge). In all cases there was no annual paperwork and no extra account or brokerage fee.įilling out the paperwork to open the account was a bit more time consuming – but not that much more time consuming – everything was on-line and I didn’t need an accountant to do the work. My accounts were with Schwab and with TD Waterhouse. I’ve had two different individual 401k accounts and have NEVER had to pay brokerage fees. Hmmm, this just doesn’t make any sense to me. You can set up a new Solo Roth 401k through 401kBrokers as well, but not through any of the big guns like Fidelity or T. Most of them charge annual fees, which is understandable since they don’t own the funds they need a way to cover their costs. You can find a huge list of Solo 401k brokers here. I have dealt with them for my corporate 401k in the past and their customer service was excellent. Rowe Price does charge an annual $10 administrative fee is charged for each mutual fund account with a balance of less than $5,000.) I am leaning towards Fidelity as they have index funds with 0.10% expense ratios, but they also have $10,000 opening minimums. #TURBOTAX DISCOUNT CODE T ROWE PRICE FOR FREE#Both of them will set you up for free and have minimal fees except for the usual fund expenses. The most attractive administrators I’ve found with low fees and a good selection of mutual funds are Fidelity and T. I think the fees are pretty fair considering there is no setup fee or other annual fees, but I still don’t want to pay them if I don’t have to. The only option I found was to go through a third-party administrator like 401kBrokers, which charges an annual maintenance fee of 0.25% of the account balance. Compare that with the SEP-IRA, you can usually walk up to many brokers, open up an account, and start trading anything with no annual fees and just commissions.įor example, I opened up my SEP-IRA last year with Vanguard, but I can’t open up a Self-Employed 401(k) with them directly as they won’t be my administrator. As I’ve mentioned in my SEP IRA versus Solo 401(k) comparison, the problem with the additional paperwork involved with a 401(k) is that you have to find an administrator that is willing to do it for you at minimal cost. ![]()
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