Author Topic: Best Solo 401k Plan? Free vs. Paid?  (Read 283 times)


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Best Solo 401k Plan? Free vs. Paid?
« on: November 20, 2020, 08:51:31 PM »

Does anyone here have their own solo 401k? A few questions:

Do you have a free prototype plan with one of the major brokers or did you pay to create a plan with an 401k provider? Which company do you use and recommend?

My goal is to have a Roth 401k option, as well as an option to contribute after-tax money beyond the $19,500 limit, and do a mega backdoor Roth conversion. Fidelity doesn't provide a Roth option so its out. I'm looking at TD Ameritrade and E-trade but I can't for the life of me figure out if they allow the after-tax contributions with mega backdoor roth.

I can go for one of the online providers like, but they charge about $400 set up and annual fee of $100+.

Another feature of the paid providers is they can set the plan up to invest in real estate. Is this worth it for me given I plan on investing in real estate in the coming year?

Any advice would be appreciated. Thank you  :)
« Last Edit: November 20, 2020, 08:53:15 PM by Mephistopheles »


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Re: Best Solo 401k Plan? Free vs. Paid?
« Reply #1 on: November 21, 2020, 03:55:54 AM »
I canít  comment on a solo 401k but in my opinion a tax advantages account is NOT the place to invest in private real estate. Long term hold Real estate is a tax efficient asset class as is and there are numerous prohibited transaction rules that make private real estate investment inside an IRA (and also a 401k, I believe) quite cumbersome/ onerous. Others can chime in if they disagree but Iíve looked into it and concluded it wasnít for me (you can google around for the issues)