Fidelity vs Ascensus Solo 401k (2026)
A comprehensive comparison to help you choose between Fidelity Solo 401k and Ascensus (Formerly Vanguard) Solo 401k
Fidelity
Fidelity offers a full-featured Solo 401k with Roth contributions, industry-leading low costs, and zero-expense ratio funds - now matching most competitors on features.
Visit FidelityAscensus
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 AscensusChoosing between Fidelity and Ascensus for your Solo 401k comes down to a straightforward question: are you starting fresh, or are you already locked into the legacy Vanguard ecosystem? Ascensus took over Vanguard's small business retirement plans in 2022, and the transition has been rocky for many account holders. Meanwhile, Fidelity has quietly become the gold standard for self-employed individuals seeking a no-cost, full-featured brokerage Solo 401k.
The differences between these two providers are significant. Fidelity offers a completely free plan with no setup fees, no annual fees, and access to their proprietary zero-expense-ratio index funds like FZROX and FZILX. Ascensus, by contrast, charges $20 per fund plus a $20 annual participant fee, meaning a typical diversified portfolio costs $60 or more per year. That fee structure actively discourages the kind of broad diversification that most financial advisors recommend.
Beyond pricing, the platforms serve different philosophies. Fidelity provides a modern brokerage experience with 24/7 customer support, mobile trading, and access to stocks, ETFs, and mutual funds from any provider. Ascensus limits you primarily to Vanguard mutual funds without ETF access, and user reviews since the transition have been notably negative regarding customer service and platform usability.
For anyone evaluating Solo 401k options in 2026, this comparison often comes down to legacy versus logic. If you have an existing Vanguard Solo 401k that transferred to Ascensus, you might wonder whether to stay or go. If you're starting new, the calculus is much simpler.
Our Rating
Fidelity has a higher rating based on our comprehensive review.
Pricing Comparison
| Fee Type | Fidelity | 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 | Fidelity | 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 | Fidelity | 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
- $0 trading fees for stocks, ETFs, and options
- Full range of investment options
- Accepts rollovers for backdoor Roth IRA strategies
- Zero-expense ratio index funds (FZROX, FZILX)
- Excellent research and educational resources
- Strong customer service reputation
Cons
- No participant loan provisions
- No after-tax contribution option
- Limited to Fidelity platform 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
Fidelity
Top tier for "Basic" users. The addition of Roth removed the single largest complaint from the user base. The platform is praised for reliability, banking/brokerage integration, and high quality customer support.
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
Fidelity wins this comparison decisively for the vast majority of self-employed individuals. The math is unambiguous: Fidelity charges nothing while Ascensus charges ongoing fees that compound over time. But the advantages extend far beyond cost.
Fidelity's zero-expense-ratio funds mean your money works harder from day one. A self-employed professional maximizing their 2026 contributions could save hundreds of dollars annually compared to Ascensus, and those savings compound over decades. The platform itself is superior, offering broader investment options, better technology, and customer support that consistently earns positive reviews.
Ascensus inherited Vanguard's reputation but not its operational excellence. The transition has been plagued by complaints about slow service, limited functionality, and a fee structure that penalizes investors for doing the right thing—diversifying across multiple funds. Charging per-fund fees in 2026 feels like a relic from a different era.
The only scenario where Ascensus makes sense is if you're deeply committed to specific Vanguard mutual funds unavailable elsewhere and the switching costs feel prohibitive. Even then, most Vanguard funds have equivalent or superior alternatives accessible through Fidelity's platform.
Our recommendation: Choose Fidelity. If you're currently with Ascensus and frustrated, strongly consider rolling over to Fidelity or another top-tier provider.
Which Provider is Right for You?
Choose Fidelity if:
Choose Fidelity if you're opening a new Solo 401k, want zero fees, prefer passive index investing, value strong customer support, or want access to the broadest range of investment options. Fidelity is ideal for cost-conscious self-employed professionals who want a set-it-and-forget-it retirement strategy without paying for features they don't need.
Choose Ascensus if:
Choose Ascensus only if you have an existing account from the Vanguard transition and genuinely prefer their specific mutual fund offerings over all alternatives. This option suits Vanguard loyalists who prioritize fund familiarity over cost efficiency and platform features, and who don't mind paying annual fees for that continuity.