Ascensus (Formerly Vanguard) Solo 401k Review (2026)
The Ascensus/Vanguard Solo 401k provides access to Vanguard funds with Roth options, but per-fund fees and limited flexibility make it less attractive than competitors.
Pricing Details
| Fee Type | Amount |
|---|---|
| Setup Fee | $0 |
| Annual Fee | $20/fund + $20 participant fee |
| Total First Year | $40-160+ |
$20 per fund annual fee plus $20 participant fee. Fees add up with multiple funds.
Pros and Cons
- Offers Traditional and Roth contributions
- Access to Vanguard low-cost index funds
- Recently added rollover options
- Strong fund selection for passive investors
- Participant loans depend on plan selection
- Limited to Vanguard mutual funds only
- Annual custodial and per-fund fees can add up
- No ETF access
- Less flexible than other prototype options
User Sentiment Analysis
User sentiment is currently negative. Long-time Vanguard users express frustration with the forced migration, new fee layers, and an online interface viewed as inferior to Vanguard's native platform. Ascensus primarily serves legacy accounts that have not yet transferred out.
Strategic Insights
- You can buy Vanguard ETFs at Fidelity or E*TRADE for free—no reason to pay Ascensus fees for Vanguard exposure
- The $20/fund + $20 participant fee structure penalizes diversification
- Consider migrating to a non-prototype provider for Mega Backdoor Roth if needed
Market Position
The narrative for Ascensus in 2026 is dominated by its acquisition of Vanguard's Individual 401(k) business. This transition marks the end of the "at-cost" administration era for Vanguard Solo 401(k)s. The offering is now difficult to justify for new entrants—investors seeking Vanguard funds can purchase Vanguard ETFs (VTI, BND) commission-free at Fidelity or E*TRADE without incurring Ascensus annual fees.
Target Audience: Long-time Vanguard loyalists who prefer keeping all investments under one umbrella and have not yet migrated to alternative providers
Watch Out For
- Forced migration from Vanguard created widespread user frustration
- Online interface considered inferior to Vanguard's native platform
- Per-fund fee structure punishes holding multiple funds
- No ETF access—mutual funds only
- Less flexible than zero-fee competitors
Feature Comparison
Compliance Notes
Does not prepare Form 5500-EZ; users must handle compliance themselves or hire a CPA.
Full Review
After Vanguard transitioned its small business retirement plans to Ascensus, the Individual 401k offering remains available with access to Vanguard's renowned low-cost mutual funds.
The plan supports both Traditional and Roth contributions and recently added rollover capabilities. If you're a long-time Vanguard investor, this allows you to keep your Solo 401k alongside your other Vanguard accounts.
However, there are notable drawbacks. The $20 per-fund annual fee plus $20 participant fee can add up if you hold multiple funds. You're limited to Vanguard mutual funds only - no individual stocks, ETFs, or funds from other families. Loan provisions are available depending on the plan option selected during setup.
For most investors, Fidelity or Schwab offer better overall value with zero fees and broader investment options. The Ascensus/Vanguard plan makes sense primarily for those who want everything under the Vanguard umbrella.
Key Features
- Traditional and Roth contributions
- Participant loans (plan dependent)
- Vanguard mutual fund access
- Rollovers accepted
- Low-cost index fund options
Who Is This Best For?
Vanguard loyalists who want to keep all their investments in one place and prefer a simple, fund-based approach.
Last updated: January 13, 2026