Help finding a Solo/Individual 401k solution

[Ben B]

I want to establish Solo/Individual 401k for my S Corps (just me and Spouse), mainly because it would allow us to deduct the highest amount, plus contribute a sizable amount to Roth via the backdoor

TO maximize the tax savings, I would like the plan to allow for the following:

A. Roth 410k
B. After-Tax (non-Roth) contributions, (to enable mega Roth backdoor)
C. Allow for in-service distribution between the traditional & after-tax to the Roth 401k, as well as to an IRA at any time
D. Allow for incoming rollovers from IRA (To avoid the pro-rata rule on my current IRA when I convert the aftertax/nondeductible money in it to a Roth)
E. Low/No fee option

At least for now I will be putting most of the money in a total market index fund, vanguard preferred. so I figured doing it with a brokerage would probably work best. but I am having a hard time finding one which actually offers what I am looking for... any help would be appreciated!

What I've found so far:

Vanguard, https://investor.vanguard.com/small-business-retirement-plans/individual-solo-401k
A - Yes, B - Unclear, and no mention of C or D, for E, $20/y per fund waived if the plan has $50K or more

Schwab https://www.schwab.com/small-business-retirement-plans/individual-401k-plans
Seems very limited, with no mention of any of the above, and implies that contributions can only be made by check??

Fidelity https://www.fidelity.com/retirement-ira/small-business/self-employed-401k/overview
Unclear if it offers any of the above

TD https://www.tdameritrade.com/retirement-planning/small-business/individual-401k.page
Offers A, but nothing mentioned on the rest

[terran]

If you want a mega backdoor Roth capable solo 401(k) you'll have to pay for it as none of the mainstream providers have a plan that allows it. This thread might be a good place to start: https://forum.mrmoneymustache.com/taxes/anyone-execute-a-mega-backdoor-roth-in-solo-401k/

Ignoring that, TD Ameritrade and E*trade are the only two mainstream providers that I'm aware of that offer both Roth 401(k) and incoming rollovers. Last I checked TD Ameritrade has a somewhat limited list of good index ETFs that trade commission free, but they might have expanded that more recently. E*trade has a large list of commission free ETFs and also a number of commission free Vanguard mutual funds.

I had my solo 401(k) at Fidelity and amended it to move to E*trade when the Qualified Business Income deduction was created so I could make Roth contributions.

[Ben B]

Thanks for the link,


I've looked into the 3rd party self-directed options a while ago (I actually paid one of them to set it up for me without contributing anything yet so I can have it on the books for 2020)


However, they all seem to make you do your own record keeping. on every contribution, transfer, distribution, etc, which I feel would be a nightmare for me. that's what made me think of the brokerage options, but if they don't have the mega backdoor then I am back to square one.

[terran]

You could take a look at https://www.employeefiduciary.com/, I think they might be a little more full service. Here's a thread about using them for a solo 401(k) with mega backdoor Roth features: https://www.bogleheads.org/forum/viewtopic.php?f=1&t=302493

[Ben B]

You could take a look at https://www.employeefiduciary.com/, I think they might be a little more full service. Here's a thread about using them for a solo 401(k) with mega backdoor Roth features: https://www.bogleheads.org/forum/viewtopic.php?f=1&t=302493

Thanks, I will review those links.


Does anyone here actually do their own record keeping for their solo 401k? would love to hear if anyone has it figured out to make it as painless as possible