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Hi Fools,
I am strongly considering starting a solo Roth 401k retirement account. However, I am finding that very few places offer this. For instance, my brokerage is Fidelity, and they do not offer this as an option.

So, I'm thinking of using a third party administrator (TPA), that would set up the solo Roth 401k. Fidelity would hold my assets, I would trade stocks, bonds, etc. with Fidelity, but the TPA would initially set it all up for me. My question is, how does one choose a TPA - is it simply based on fees? Can anyone recommend a good TPA, or a place that, say, ranks TPAs???

If a TPA goes belly up -is this trouble? One company I spoke with today said that, since a TPA is just an administrator, and my assets would be with Fidelity (probably not likely to go belly-up), then it's not a huge concern.

Anyway, I would appreciate any thoughts.

Best,

Neil
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You certainly don't want your account to get sucked into a bankruptcy or some sort of fraud case. So I should think it would be appropriate to ask about the financial position of the TPA. Are they insured? Bonded?

Usually your brokerage account is insured by SPIC. Does that cover TPA too?
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Great news: I just discovered that TD Ameritrade offers a solo Roth 401k option. This is great, as the fees are low and I don't have to bother finding a third party administrator.

For anyone interested in a solo Roth 401k, it's worth while checking TD Ameritrade out!

Best,

Neil
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Well, looks like TD Ameritrade gave me the wrong information: they do NOT offer a solo Roth 401k option, it turns out. This is such a great option for self-employed people, but I just can't find any broker that offers it.

So, I'm back at the beginning: looking for a third party administrator. If any Fools have any advice regarding finding a third party administrator, it would be much appreciated.

Best,

Neil
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The TPA does not hold the assets in the Plan, so you have no worries about the security of your account if you go bankrupt. If you work with an Advisor, Oppenheimer offers the Single K with a Roth option. Only $15 per year, $10 if over $50k in the plan. Only issue, its Oppenheimer Funds only, and since they are advisor distributed you have to choose from Class A, B or C shares.
Otherwise, without knowing where you are located, can't really recomend a TPA. Call a few and get price quotes. They can also recomend investments in most cases, as they probable have other clients doing the same thing.

Bill
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Hi Bill,
Thanks for the info. I actually found out about a couple of TPAs from Fidelity. Both have reasonable fees, and the best part is that I can invest in any stock that I want to with Fidelity - there are no restrictions. (As someone who avoids mutual funds and invests only in individual stocks, this is much more appealing than an Oppenheimer-type option). Thanks for the help. I am actually now a little confused about whether I qualify for a solo 401k option now (see next dicussion thread), but in the end I hope I am, as a ROTH IRA sounds like a grand idea for the long term.

Best,

Neil
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