Does Vanguard Have a Solo 401(k)? 4 Options for Investors
Interest in Solo 401(k) plans has grown alongside the rise of self-employment, leading many investors to wonder which major brokerage firms still offer these accounts.
A common question is whether Vanguard, long associated with low-cost retirement investing, still provides a Solo 401(k) option today.
What Happened to Vanguard’s Solo 401(k)?
Vanguard’s Solo 401(k) was transferred to Ascensus in 2024.
Vanguard exited the Individual 401(k) business, making Ascensus responsible for
- Plan administration
- Recordkeeping, and
- Servicing.
Existing accounts were migrated, while investors retained access to Vanguard funds through Ascensus’s Individual(k) platform.
Can You Open a 401(k) Through Vanguard Now?
No new Solo (Individual) 401(k) plan can be opened at Vanguard.
The Solo 401(k) product has been discontinued for new accounts, and existing accounts have been handed off to Ascensus.
Vanguard’s sole self-employed retirement offering is now the one-person SEP IRA.
But, they still offer retirement products for small businesses, just not a fresh Solo 401(k) signup the way it used to.
Current Vanguard Options for the Self-Employed
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See whether your 401K can help fund a business purchase, what rules may apply, and what to check before you move money out of retirement savings.
Check If You Qualify?1. Traditional/Roth 401(k)
Vanguard does offer 401(k) plans called Vanguard 401(k) or Workplace Plans for businesses with multiple employees, but these are handled via Vanguard’s retirement plan division, not as a DIY solo account.
They require working with a financial advisor or the Vanguard institutional channel.
These are large-company plans, not typical for sole proprietors.
2. SEP-IRA
Next, Vanguard allows you to create SEP-IRA accounts for any business, including sole proprietors.
SEP-IRAs at Vanguard have no setup/maintenance fee, but contributions must be employer-only up to 25% of compensation.
No Roth option exists for SEP-IRAs.
3. Simple IRA
Vanguard’s SIMPLE IRA product is now managed by Ascensus, but I would recommend this for small businesses that want a simple plan with mandatory employer contributions.
But a self-employed person could open a SIMPLE IRA at Vanguard only if they are willing to use Ascensus’s platform.
4. IRA Accounts
As always, Vanguard offers traditional and Roth IRAs to individuals with no income verification needed.
These are not 401(k)s, but an alternative retirement savings vehicle for any taxpayer.
Alternatives to Vanguard for Solo 401(k)
Vanguard is known for low fund expenses, but it does impose some account and fund service fees on retirement accounts.
Since Vanguard’s Solo 401(k) is gone, one must use other providers. Here are some broad alternatives.
| Fee Type | Vanguard | Fidelity | Schwab | E*TRADE |
|---|---|---|---|---|
| Account setup fee | $0 (no setup fee) | $0 (no account fees) | $0 (no account fees) | $0 (no setup/annual fees) |
| Annual/maintenance | $25/year account fee; $20/fund | $0 (no maintenance fee) | $0 maintenance fee | $0 (no annual fee) |
| Stock trade commission | $0 online (U.S. stocks) | $0 online (U.S. stocks) | $0 online (U.S. stocks/ETFs) | $0 online (U.S. stocks) |
| ETF trade commission | $0 online (U.S. ETFs) | $0 online (U.S. ETFs) | $0 online (U.S. ETFs) | $0 online (U.S. ETFs) |
| Options trade commission | $0.65/contract | $0.65/contract | $0.65/contract | $0.65/contract |
| Mutual fund fees (no-load) |
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| Mutual fund expense ratio |
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| Account transfer out | $0 (retirement plans) | $0 full transfer (retail IRA) | $0 (IRA/retirement) | $0 (no fee) |
| Termination fee | $0 (no closing fee) | $0 | $0 | $0 |
| Hidden fees | None beyond disclosed fees | None hidden; no account fees | None hidden | None hidden |
- • $0 load
- • $50 short-term redemption fee
- • Thousands of NTF funds
- • Several ZERO-fee funds
- • Thousands of NTF funds
- • Index funds available
- • ~4,500 NTF funds
- • $0 purchase/redemption on NTF funds
- • Avg. ~0.07%
- • Typical: 0.04%–0.18%
- • 0%–0.40%
- • ZERO funds available
- • 0.02%–0.03% (index funds)
- • Competitive across lineup
- • Typically 0.05%–0.75%
- • Depends on fund provider
Should Existing Vanguard Solo 401(k) Users Move?
Option 1: Staying with Ascensus/Vanguard
If you do not have much of an issue with Ascensus $20/fund and $20 plan fee, you can remain invested in Vanguard funds.
Sometimes staying is the simplest option.
Option 2: Rolling over to another plan
Next, you can also rollover your Vanguard Solo 401(k) assets to a new Solo 401(k) at Fidelity, Schwab, etc.
This is typically done as a direct rollover between plan custodians.
There is no tax hit on a direct rollover. But, you would need to set up a new Solo 401(k) at the receiving firm with its own EIN, if required, and complete a Trustee-to-Trustee transfer of funds.
Fidelity/Schwab imposes no fees to transfer in or out.
After the rollover, any plan loans at Vanguard must be repaid, or the plan must be terminated.
Vanguard Solo 401(k) FAQs
Yes, Vanguard’s Solo 401(k), administered through Ascensus, allows both Roth and traditional contributions within standard IRS limits.
No, Vanguard’s Solo 401(k) does not permit participant loans, unlike some third-party Solo 401(k) providers that offer this feature.
No, Vanguard’s Solo 401(k) does not support after-tax contributions or the mega backdoor Roth strategy beyond standard contribution rules.
Vanguard’s Solo 401(k) is limited to Vanguard mutual funds and does not allow individual stocks, ETFs from other providers, bonds, or alternative assets.
No, new contributions are no longer made through Vanguard and must instead be made through the Ascensus-administered plan or another Solo 401(k) provider.
Vanguard does not charge a flat annual account fee, but it applies per-fund service fees on holdings within the Solo 401(k).
Form 5500-EZ must be filed annually for all one-participant Solo 401(k) plans beginning with the 2025 plan year, typically due July 31 of the following year.
