I have a Self-Directed 401K (I am self-employed) with all funds invested at Schwab (SWTSX).
I've inquired at Vanguard - as I'd rather be invested there - however their method of holding funds seems so obtuse to me (I will explain below).
I am hoping that the MMM readership will have some thoughts, suggestions, insight, as I am a bit stumped.
SCHWAB
When setting-up the account, Schwab creates "sub-accounts" for each account / account holder. So, this means that I have a handful of sub-accounts:
* Rollover (from previous 401k): checkbook control, ~ $50K
* 401k Account: Just started funding in 2015
* ROTH 401k Account: ~ $40K in this account (not funding this at present)
* Profit Share Account: We will use the Profit Share aspect in 2015
AND.....I have all but the Rollover account for my wife established as well (!).
As you can see, I have four accounts that are all housed under the (umbrella) of my SD401K plus three accounts for my wife, thus seven distinct accounts.
Now, Schwab has been fine, and SWTSX is as close as I can get to VTSAX with Schwab. Maybe that is good enough?
The crux here, is that Vanguard, in conversation, has said I can transfer it all, however they dump the entirety into a single account, ie; there is no partition between 401K / ROTH 401K / Rollover / Profit Share....or any of my wife's accounts. It's all kind of one big pot with Vanguard...
1) How then, do I differentiate the wife's funds from mine, whether for the IRS or divorce court, or ______? (I don't plan on those things, but $#!+ happens).
2) And what about at distribution time? If I never contribute to the ROTH 401K again, how do I know how much those dollars earned vs the taxable dollars? Further, if I use my ROTH dollars to do a deal (ie; I've used it in the past for small hard money loans) - how do I demonstrate earnings from it, versus the taxable account earnings?
It is likely that I am overthinking this, or missing the forrest for the trees, and I am hoping to get some clarity.
Again, I've been pleased w Schwab, but would feel better at Vanguard (Silly, maybe? But Vanguard is owned by the shareholders, and Schwab cannot say the same).
Your thoughts / input are TREMENDOUSLY appreciated, with many thanks in advance.
If you need more info, or if I haven't been clear, please let me know & I will try to provide more info.
Thank you again,
Todd