Schwab vs Ascensus Solo 401k (2026)
A comprehensive comparison to help you choose between Charles Schwab Solo 401k and Ascensus (Formerly Vanguard) Solo 401k
Schwab
Charles Schwab offers a solid prototype Solo 401k with Roth contributions and no fees, though it lacks loan provisions.
Visit SchwabAscensus
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 Charles Schwab and Ascensus for your Solo 401k in 2026 presents an interesting dilemma: two providers with identical ratings but fundamentally different value propositions. Schwab represents the traditional brokerage approach—a free, no-frills prototype plan backed by one of the most recognized names in retail investing. Ascensus, meanwhile, carries the legacy of Vanguard's Solo 401k program, offering continued access to Vanguard's legendary mutual funds but with a fee structure and user experience that has left many participants frustrated since the transition.
This comparison matters because both providers occupy a similar middle ground in the Solo 401k landscape. Neither offers the cutting-edge features found at providers like Fidelity or E*TRADE, yet both remain viable options for self-employed individuals seeking straightforward retirement savings. The real question isn't which provider is objectively better—it's which one aligns with your specific investment philosophy, fee tolerance, and administrative preferences.
Schwab brings zero ongoing costs and award-winning customer service to the table, while Ascensus provides something increasingly rare: direct access to Vanguard mutual funds within a Solo 401k structure. However, both come with notable compromises. Schwab lacks loan provisions entirely, while Ascensus charges per-fund fees that can add up quickly for diversified portfolios. Understanding these tradeoffs is essential before committing your retirement savings to either platform.
Our Rating
Pricing Comparison
| Fee Type | Schwab | 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 | Schwab | 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 | Schwab | 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
- Wide range of investment options
- No setup or annual fees
- Excellent customer service
- Commission-free stock and ETF trading
- Strong research and educational tools
Cons
- No participant loan provisions
- No after-tax contribution option
- Limited to Schwab platform investments
- Manual paperwork for some administrative tasks
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
Schwab
While the brokerage platform itself is robust and the Schwab Mobile app is excellent for trading, the Solo 401k product feels neglected. The lack of loans, combined with manual administrative processes, makes it difficult to recommend over Fidelity or E*TRADE.
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
For most self-employed individuals evaluating these two options in 2026, Charles Schwab edges out Ascensus as the more practical choice. The zero-fee structure eliminates the mental math of calculating per-fund costs, and Schwab's customer service reputation provides peace of mind when navigating Solo 401k administration questions.
However, this recommendation comes with important caveats. If you're an existing Ascensus participant who transferred from Vanguard and you've built your retirement strategy around specific Vanguard mutual funds, the switching costs—both financial and psychological—may not justify a move. The loan option available through some Ascensus plans also represents genuine value that Schwab simply cannot match.
The honest truth is that neither provider represents the best-in-class Solo 401k experience available today. Both carry a 3.5 rating for good reason: they're adequate but uninspiring. Schwab is losing ground to competitors who offer more modern features, while Ascensus continues to struggle with the aftermath of the Vanguard transition. If you're starting fresh and these are your only two options, choose Schwab for its simplicity and cost structure. But if you have flexibility, consider whether providers like Fidelity might better serve your long-term needs.
Which Provider is Right for You?
Choose Schwab if:
Choose Schwab if you prioritize zero fees above all else and don't anticipate needing plan loans. It's ideal for investors who want broad investment selection, appreciate responsive customer service, and prefer a straightforward brokerage relationship. Schwab works well for those comfortable with occasional manual paperwork and who don't need cutting-edge digital tools.
Choose Ascensus if:
Choose Ascensus if you're already invested there from the Vanguard era and your portfolio relies heavily on specific Vanguard mutual funds unavailable elsewhere. It's also worth considering if plan loans are essential to your financial strategy. Legacy participants with established positions may find the transition costs outweigh Schwab's fee advantages.