Many self-employed people don’t realize they have access to a retirement plan that offers similar benefits to a traditional 401k — without requiring a large employer to sponsor it. The Solo 401k is designed specifically for those who work for themselves, either full-time or as a side business, and want to contribute more than what IRAs typically allow.
Ascensus, which took over Vanguard’s Solo 401k accounts, continues to offer these plans in 2025. The company provides a straightforward option for those who want tax advantages, flexible contributions, and a range of investment choices.
If you’re weighing retirement plan options or just want to understand what the Ascensus Solo 401k includes, you’re in the right place. This article breaks down how it works, what it costs, and who it may be best suited for — so you can make an informed decision based on your needs and goals.
📌 Also Read: Can You Have Both a Solo 401k and a Regular 401k? Rules & Contribution Limits
The Solo 401k Handbook
Everything you need to know about the most powerful retirement plan for business owners and the self-employed.
Who Can Open an Ascensus Solo 401k?
✅ Self-Employment Activity: You must have self-employment income, which can come from various business structures, including sole proprietorships, partnerships, limited liability companies (LLCs), or corporations.
✅ No Full-Time Employees: Your business must not employ any full-time employees who are eligible to participate in the plan, other than the owner(s) and their spouse(s). A full-time employee is generally defined as one who works 1,000 hours or more per year.
✅ Spousal Participation: If your spouse earns income from your business, they may also join the Solo 401k plan. This can potentially increase your combined contribution limits as a household.
📝 Note: If you hire additional full-time employees who meet the eligibility requirements, the Solo 401k plan must be updated to include them, and it may become subject to additional compliance testing.
2025 Contribution Limits Under the Ascensus Solo 401k
Ascensus follows IRS rules for Solo 401k contributions, which means the amount you can contribute depends on your role as both employee and employer.
For 2025, the IRS has increased the Solo 401k contribution limits. If you’re self-employed, these limits apply to what you can potentially contribute as both the employee and the employer.
Here’s a quick breakdown:
✅ Employee Contribution Limit: Up to $23,500 in salary deferrals.
✅ Catch-Up Contribution: An additional $7,500 on top of the employee limit if you’re age 50 or older.
✅ Employer Contribution Limit: Up to 25 percent of your compensation, based on how your business income is calculated.
✅ Total Maximum Contribution: The combined employee and employer contributions can go up to $70,000.
✅ With Catch-Up (Age 50+): The total increases to $77,500 if you’re eligible for the extra catch-up amount.
📝 Your actual contribution limit depends on your income and business type. For self-employed individuals, compensation is generally based on net earnings after accounting for deductions.
📌 Also Read: Solo 401k Contribution Limits & Deadlines for 2024 & 2025
Ascensus Solo 401k Investment Options
Vanguard Mutual Funds
Ascensus makes it possible to invest in a range of Vanguard mutual funds through its Solo 401k plan. These include:
✅ Target Date Funds
✅ Balanced Funds
✅ U.S. and International Stock Funds
✅ Bond Funds
Open Architecture Options
Ascensus also offers open architecture investment platforms, providing broader flexibility. Depending on the chosen plan design, investors may have access to:
✅ A wide range of mutual funds beyond Vanguard
✅ Exchange-Traded Funds (ETFs)
✅ Other investment vehicles
Ascensus Solo 401k Plan Features
The Ascensus Solo 401k — also called Individual(k) — offers a set of core features designed for people running their own business without full-time employees. Here’s what you need to know:
✅ Pre-Tax and Roth Contribution Options
You can choose between pre-tax contributions, which lower your taxable income today, or Roth contributions, which are made with after-tax dollars but may offer tax-free withdrawals later. This gives you flexibility to align your savings with your current tax situation and long-term plans.
✅ Loan Provision (Plan-Dependent)
Some plan versions let you borrow from your account. This can be helpful if you need temporary access to funds, though it’s important to follow IRS loan limits and repayment rules.
📝 Note: Ascensus plans that use Vanguard investments do not offer loan features.
✅ Rollover Support
If you’re consolidating old retirement accounts, the Ascensus Solo 401k accepts rollovers from Traditional IRAs, SEP IRAs, former employer 401k plans, and more. This can make it easier to consolidate and manage your retirement savings in one place.
✅ Easy Setup and Administration
Ascensus handles much of the paperwork, including plan documents and recordkeeping. The setup process is fully online and doesn’t require a third-party advisor. This keeps costs lower and makes the plan easier to maintain over time.
Fees and Pricing
The Ascensus Solo 401k comes with a simple, flat fee structure in 2025 — no surprise charges or complex tiers.
✅ $20 annual fee per Vanguard mutual fund, per participant
✅ $20 annual custodial fee per participant
These fees are in addition to the expense ratios of the funds you choose. There are no account opening or setup fees, making it an affordable option for self-employed individuals who want access to Vanguard investments.
📝 Note: If both spouses participate or you invest across multiple funds, total annual fees may increase, so it’s important to factor that into your provider comparison.
Disclosure: Pricing information for Ascensus is current as of January 2025 and is subject to change without notice. Please verify the latest fees directly with Ascensus before making any investment decisions.
📌 Also Read: Form 5500-EZ Filing Requirement for Solo 401k Plans Over $250,000
Ascensus Solo 401k Pros and Cons
If you’re thinking about using the Ascensus Solo 401k, it’s helpful to know where it stands out and where it might fall short. Here’s a quick look at what works well and what to keep in mind before signing up.
Pros
✅ You can choose from different plan setups.
Ascensus doesn’t take a one size fits all approach. It offers a few plan design options, including CoPilot 3(38), Daily Value, and Balance Forward. This gives you the flexibility to choose a setup depending on your desired level of control.
✅ You get access to a wide range of Vanguard funds.
Ascensus gives you plenty of investment options, so you’re not stuck with a limited menu.
✅ The setup is relatively simple.
The plan is made for owner-only businesses, so it skips many of the admin requirements larger plans deal with.
Cons
❌ The online portal could use improvement.
Some users find the dashboard feels less intuitive or limited in detail.
❌ Moving your account isn’t always easy
Transferring a Solo 401k from Ascensus to another provider may involve a lot of paperwork and back-and-forth communication.
❌ You’ll want to watch out for extra fees
There’s a $20 annual fee per Vanguard fund per participant, plus a $20 custodial fee. If you invest in several funds, these fees can add up each year. Over time, they don’t just lower your account balance — they can also reduce the amount you’re able to reinvest and compound. This can slow your portfolio’s growth significantly, especially in lower-balance accounts.
Conclusion: Is Ascensus Solo 401k the Right One For You?
If you’re self-employed and looking for a way to save more for retirement, the Ascensus Solo 401k could be a strong option to consider. It offers access to trusted Vanguard funds and a few different plan setups to match how hands-on you want to be.
That said, it’s not perfect for everyone. The online platform feels a bit limited for some users, and the fees can add up if you’re investing in multiple funds.
The best next step is to look at what matters most to you—whether it’s investment choice, ease of use, or cost—and compare it to what Ascensus offers.
Always review current plan terms and consider working with a qualified professional to evaluate the best Solo 401k provider for your situation.
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Disclaimer:
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