So I recently got a notice that Solo401k.com (by Nabers Group) raised their prices big time. It went from $99/year to $29/month. They called it an ‘inflation adjustment’ and introduced a $500/year tax credit at the same time. Last year, they didn’t even mention this credit. This feels like the usual business tricks I’ve seen from them. The company is run by a couple, one of whom seems like a lawyer, but the other person doesn’t really come off as the ‘financial expert’ they claim to be when you talk to them in customer service.
Their service is decent compared to others, but the price is a big issue. Current customers may find themselves stuck unless they jump through hoops to set up a new plan. For new customers, I’d recommend checking out other options like mysolo401k.
These thoughts are based on my own experience and my clients’ experiences. I’m frustrated with how Nabers changed their prices and are making it harder to move away from them. I won’t get anything from either company mentioned here. If anyone knows of other good Solo401k providers with flexibility, I’d love to hear about them.
Olen said:
What are you paying for with Solo 401(k)? I don’t really get what your question is. I have mine at Schwab and there are no fees at all.
The free Schwab/Fidelity/E-Trade Solo 401ks are pretty basic. Schwab and Fidelity don’t accept Roth contributions (though I heard Fidelity will add it soon). The paid services let you set up your own customized Solo 401k with you as the custodian, which also supports the Mega Backdoor Roth.
Fidelity says: “The Roth Self-employed account isn’t available yet, but we will let clients know when it is.” Roth contributions for the 401(k) plan will be available before January 1, 2026. Fidelity Self-employed 401k Overview
@Rin
Interesting. I could’ve sworn they didn’t support this when I last checked. Thanks for the info. Anyway, neither Schwab nor Fidelity supports the ‘after-tax’ contributions needed for the Mega Backdoor Roth strategy.
@Cy
Yes, there’s the annual 5500 form to file online with the IRS, but it’s only needed once your assets hit $250,000, and it only takes about 15 minutes.
@Lennon
You don’t need a company to manage it. Just park the SE-401(k) at Fidelity or Schwab and file your 5500 form once a year (only if your account goes over $250,000, takes 15 minutes to fill out).
@Cy
That’s not what I’m talking about. The companies like the ones I mentioned charge for annual maintenance, like updating plan documents when requirements change or addressing simple things like changing your plan address, which Nabers will now charge for.
@Lennon
Brokers like Schwab offer individual 401(k) plans and update plan docs as necessary at no charge. They maintain the underlying plans and hold investments.
River said: @Lennon
Brokers like Schwab offer individual 401(k) plans and update plan docs as necessary at no charge. They maintain the underlying plans and hold investments.
That’s different. Schwab doesn’t offer the same type of plan, although it’s related to solo 401ks.
I use DiscountSolo401k.com. It took a little back-and-forth to set up, but after that, it’s been fine. Honestly, most of these providers are pretty much the same. Some do the 1099-R and/or the 5500EZ forms for you, but those forms are simple, so I didn’t really care about that.
My Solo 401k is at Fidelity. The application was long, so I printed it out first, filled it out, and then applied online to speed things up. When the account opens, link it to your bank account for funding.
Fidelity currently only offers a Traditional plan, but they will soon offer a Roth plan. I plan to use both.
Lennon said: @Kyrie
Thanks for mentioning that. I’ll keep an eye on Fidelity, and when they offer a Roth plan, I’ll likely switch and refer clients there.