ASCENSUS Individual k Review
Update 8/12/2024: Was your Vanguard Individual 401k transitioned to Ascensus? Please see our comprehensive step-by-step transfer guide HERE.
Please check out our webinar as we discuss the top reasons why clients transfer or switch their solo 401k at ASCENSUS to a self-directed Solo 401k with us including
- The reasons why clients switch
- The fees and costs
- The ongoing compliance support that we provide.
Upgrade Your ASCENSUS Solo 401k
- Why Switch?
- 100% FLAT FEE self-directed plan including Mega Backdoor Roth & Alternative Investments for no additional charge
- Expert Compliance Support (5500-ez, 1099-R, expert compliance team, etc.) for no additional charge
- How to Switch
ASCENSUS vs. Self-directed Solo 401k
How to Change Plan Providers:
ASCENSUS to Self-directed Solo 401k
Process:
- New Solo 401k Plan Documents (vs. ASCENSUS “Do it yourself/DIY” plan documents)
- List the original plan effective date
- Obtain 401K EIN
- Close Existing Account and Open New Account(s)
- Pre-Tax, Roth and Voluntary After-Tax
- Spouses
- ASCENSUS Restatement Forms:
- Individual (K) Termination Kit/ Plan Conversation Form (3 pages)
- Plan Termination Payout Request Form (4 pages)
- Not Required: No Final 5500-EZ or 1099-r
Additional Considerations:
- If assets exceed $250K:
- Have you been filing Form 5500-EZ?
- If not, need to file under the IRS Correction Program
- Do you wish to keep investments (in-kind transfer)?
- Confirm that new brokerage account provider offers those funds
- Are there multiple participants (e.g. spouses)?
- Segregate the funds and transfer into separate sub-accounts
- Consider filing an extension to ensure plenty of time to make contributions
Self-directed Solo 401k –
Compliance Support
- Form 5500-ez
- If your solo 401k plan balance exceeded $250,000 as of December 31, a Form 5500-EZ is due to the IRS by July 31.
- 1099-R
- Distributions, Rollover, In-Plan Conversions
- Solo 401k IRS Required Plan Updates
- IRS-required plan updates with the next required update occurring in 2020 or 2021 once the IRS approves the industry wide update
- Contribution Calculation (including Mega Backdoor Roth)
- Loan Document Preparation
- Alternative Investments
- Account Setup
- Bank, Brokerage, Crypto exchange, etc.
