E*TRADE vs Ascensus Solo 401k (2026)
A comprehensive comparison to help you choose between E*TRADE Solo 401k and Ascensus (Formerly Vanguard) Solo 401k
E*TRADE
E*TRADE offers one of the most feature-rich prototype Solo 401k plans available, with both Roth contributions and loan provisions at no cost.
Visit E*TRADEAscensus
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.
Visit AscensusIf you're comparing E*TRADE and Ascensus for your solo 401k in 2026, you're likely in one of two camps: either you're shopping for a new free brokerage plan, or you're a former Vanguard customer trying to figure out what happened to your account. These two providers occupy very different positions in the solo 401k landscape, and understanding the distinction matters for your retirement strategy.
E*TRADE offers what many consider the best free prototype plan available—a brokerage solo 401k with zero setup costs, zero annual fees, and a feature set that includes both Roth contributions and participant loans up to $50,000. For self-employed individuals who want flexibility without complexity, it's a compelling option.
Ascensus, on the other hand, is the administrator that took over Vanguard's small business retirement plans. If you had a Vanguard solo 401k before the migration, you're now an Ascensus customer whether you chose to be or not. The transition hasn't been smooth for many users, and the fee structure—charging per fund plus a participant fee—feels dated compared to modern alternatives.
This comparison will break down the real differences between these two providers: what each actually costs, which features matter for solo 401k investors, and whether staying with Ascensus makes sense or if migrating to E*TRADE (or another provider) is worth the paperwork. We'll give you a straightforward recommendation based on fees, features, and user experience.
Our Rating
E*TRADE has a higher rating based on our comprehensive review.
Pricing Comparison
| Fee Type | E*TRADE | Ascensus |
|---|---|---|
| Setup Fee | $0 | $0 |
| Annual Fee | $0 | $20/fund + $20 participant fee |
| First Year Total | $0 | $40-160+ |
Long-Term Cost Analysis
See how costs add up over time
| Time Period | E*TRADE | Ascensus | Difference |
|---|---|---|---|
| 1 Year | $0 | $60 | -$60 |
| 3 Years | $0 | $180 | -$180 |
| 5 Years | $0 | $300 | -$300 |
| 10 Years | $0 | $600 | -$600 |
Green highlighting indicates the lower-cost option for each period.
Feature Comparison
| Feature | E*TRADE | Ascensus |
|---|---|---|
Roth Contributions After-tax contributions with tax-free growth | ||
Participant Loans Borrow up to $50,000 from your plan | ||
After-Tax (Mega Backdoor) Contribute beyond standard limits | ||
Alternative Investments Real estate, crypto, private equity | ||
Checkbook Control Direct investment management |
Pros and Cons
Pros
- Offers both Traditional and Roth contributions
- Allows participant loans up to $50,000
- No setup or maintenance fees
- Wide range of investment options including stocks, ETFs, mutual funds, and options
- Commission-free online trades for stocks and ETFs
- Strong mobile app and research tools
Cons
- Limited in-service distribution options
- No after-tax (Mega Backdoor Roth) contribution option
- Cannot hold alternative investments like real estate
- Must use E*TRADE platform for investments
Pros
- Offers Traditional and Roth contributions
- Access to Vanguard low-cost index funds
- Recently added rollover options
- Strong fund selection for passive investors
Cons
- 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
E*TRADE
Highly rated for the specific demographic of "Liquidity Seekers." The ability to access a $50,000 line of credit tax-free via a participant loan without paying a setup fee is a massive value proposition.
Ascensus
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.
Our Verdict
E*TRADE is the clear winner for most solo 401k investors in 2026. The math isn't complicated: E*TRADE charges nothing while offering both Roth contributions and loan access, while Ascensus charges $20 per fund plus $20 per participant annually. If you hold just three Vanguard funds through Ascensus, you're paying $80 per year for a plan that actually discourages diversification through its fee structure.
The only scenario where Ascensus makes sense is if you're already there with a substantial balance and genuinely don't want to deal with a rollover. Even then, you should question whether loyalty to Vanguard funds justifies paying fees that punish you for spreading your investments across multiple holdings. You can buy Vanguard ETFs commission-free at E*TRADE anyway.
The user sentiment around the Vanguard-to-Ascensus migration has been notably negative, with complaints about customer service and platform quality. E*TRADE, backed by Morgan Stanley, offers a more polished brokerage experience with better trading tools and no per-fund penalties.
E*TRADE's limitations—no after-tax contributions or alternative investments—won't affect most solo 401k participants. If you need those features, you're looking at custom document providers anyway, not prototype plans. For the typical self-employed professional, E*TRADE delivers more value at zero cost.
Which Provider is Right for You?
Choose E*TRADE if:
Choose E*TRADE if you want a genuinely free solo 401k with maximum flexibility. It's ideal for self-employed individuals who value the $50,000 loan provision for cash flow needs, want Roth contribution options, and prefer commission-free trading across stocks, ETFs, and mutual funds. E*TRADE works well for anyone starting fresh or willing to roll over from another provider.
Choose Ascensus if:
Choose Ascensus only if you're an existing customer with a large balance who specifically wants to remain invested in Vanguard mutual funds (not ETFs) and would rather pay ongoing fees than complete a rollover. This might apply if you're close to retirement and want to avoid any disruption, but for most people, the fees and platform limitations make staying difficult to justify.