4 ms·

I have my company 401k with Vanguard, and I'm a single founder. I do have a single-k, so it may only be harder to set it up if you have two or more employees.

• boulos 10y ago
  Yes. The Small Business Plan (not the single one) is harder / more annoying. It's also improved a lot in the last five years, but the fact is that Vanguard / Fidelity still don't really compete for this business (yet) and are happy to have these folks figure out the recordation, ERISA, etc. issues. Do you have any revenue / income yet? Did you raise funding and thus are paying yourself a salary? I'm genuinely curious about single-person 401k plans in the absence of real revenue...
  • theli0nheart 10y ago
    > Do you have any revenue / income yet? Did you raise funding and thus are paying yourself a salary? I'm genuinely curious about single-person 401k plans in the absence of real revenue... I've been running the business full-time since 2010. I'm paying myself a salary and haven't taken any funding. I don't have plans to scale massively or hire employees. As far as I recall, I don't think Vanguard cared one way or the other about how much revenue the company was making. It's been a while since I set it up though. :)
    • boulos 10y ago
      I just mean you need revenue to pay yourself such that a tax-deductible contribution to a 401k is actually tax deductible. (Being a solo person with revenue is absolutely fine, I wrongly assumed you had done this recently and thus might be pre-revenue).
• uptown 10y ago
  In this case, wouldn't a SEP also be an option?
  • theli0nheart 10y ago
    Yep, absolutely. I'm not sure if Vanguard offers them though.
    • nopleaseno 10y ago
      They do.
    • ac29 10y ago
      Yes: https://investor.vanguard.com/what-we-offer/small-business/sep-ira https://investor.vanguard.com/what-we-offer/small-business/s...