Has anyone setup one of these? I'm interested in the Roth variant of this.
I like the idea of this because I'd hold my own trust and be allowed to invest how I see fit. E.g. say use Robinhood for stock acquisitions commission free. And perhaps cherry pick benefits from other brokerages like Vanguard for their low cost Admiral Shares & ETF index funds (e.g. VTSAX, VTI, VOO, etc.).
I would go with Vanguard Solo 401k -- i.e. not self directed -- but they don't allow you to trade stocks or ETF within it and their expense ratios are three times higher than admiral share / ETF funds in a Roth IRA account. (Also they charge $20 per fund annual fee if your combined Vanguard investments total less than $50k -- which would probably be $40 per year for me since I'd want both total index and bond funds.)
What firm did you use and how much did it cost you? (Or what firms seem interesting to you?) Do you have an ongoing relationship? Will they offer ongoing support / training / answering questions, at a reasonable rate? Will they update/amend the plan documentation as needed to keep up with IRS code? (I read there are severe penalties if your plan documentation doesn't stay updated.)
I want to do this if it would not be too much work to administer. I realize I'd need to file a 5500 EZ once per year once the balance becomes larger than 250k, and that doesn't seem too hard.. the form isnt that long.
I am already familiar with some of the rules like prohibited investments .. e.g. like not doing investment business with family, etc. So I realize one has to be careful. Hopefully the lawyer(s) one hires would make all this clear and offer telephone support if any questions arise.
I also do like the option later on to invest in other things within this Roth account (e.g. real estate), but right now just focusing on low expense ratio funds and commission free stock trades. Also, the 50% / 50k loan feature seems appealing (at prime + 2%).
