Let's talk self-employed 401K

Investing
#1

Hey Jeremy + PFC Community,

Thankful for all your content! You’ve sparked a fire under a lot of us young investors, truly providing us some life changing information.

My question is about the best route for the self-employed individual seeking a tax advantaged retirement account! I’ve fully funded my Roth IRA through Fidelity for the past two years. I also have a decent amount invested in index funds through an individual brokerage account, also with Fidelity.

Through my research, people seem to advise on taking the Solo 401K as opposed to the SEP IRA. (The business nets about 100k annually, and has no employees other than myself.) Should I be looking into Roth options for the 401K? or is the traditional solo 401K an equally as advantageous option?

As a side note, the Fidelity options seem to be limited in this field, as they don’t offer a Roth option for the solo 401. The details also list the inability to make mobile or online deposits to the account, which seems like a major turn off in this modern age. (I believe you call or mail in check to deposit)

Am I on the right track to think Vanguard is the best substiture/route to open a Solo 401K?

Thank you so much for your time!

#2

Hey Griffin!

I have never opened a Solo 401k… I don’t know much about them. It’s probably worth running it by a CPA as I know SEPs and Solo 401ks have specific rules around who is eligible and what kind of income counts. They’re unfortunately not as simple as opening a Roth IRA.

For what it’s worth, Fidelity does have mobile check deposit, and every type of money transfer option you could want. At least for all my accounts. I’m not sure if it’s different for a solo 401k.

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