TD Ameritrade Solo 401k Review

TD Ameritrade also offers a free solo 401k plan. There are no set up fees, or any annual maintenance fees to hold your account, and all regular trades within the solo 401k are $0 per stock, ETF, and option trade. The solo 401k offered by TD Ameritrade comes with a pre-tax account, but no Roth account, no ability to do a mega backdoor Roth, and no access to investments into alternative asset classes. TD Ameritrade was acquired by Charles Schwab so their solo 401k plans will soon share some of the same features as the Schwab Solo 401k.

Overview

Pricing

The TD Ameritrade Solo 401k is free to set up, there are no maintenance fees, and $0 commissions on stocks, ETFs, and options.

Contribution limits and Roth

You can contribute up to $61,000 for 2022 and $66,000 for 2023. If you’re at least 50 years of age, you can contribute an additional $6,500 for 2022 and an additional $7,500 for 2023.

You can only contribute to a pre-tax solo 401k when you open an account with TD Ameritrade. It does not come with a Roth solo 401k, and you cannot execute a mega backdoor Roth.

Investment Options

The TD Ameritrade Solo 401k lets you invest in traditional assets like individual stocks, ETFs, mutual funds, and bonds. However, the account is not self-directed, nor do you have checkbook control. You cannot invest your solo 401k into alternative asset classes, like you could with a self-directed solo 401k.

Rollovers & Loans

TD Ameritrade allows rollovers from most retirement plans, like a 401k, 401a, 403a, 403b, 408, and 457b. However, like the Charles Schwab Solo 401k, you cannot rollover an IRA into their solo 401k plan.

TD Ameritrade used to offer solo 401k loans, but was discontinued.

Wrapping up

If you already bank with TD Ameritrade, and aren’t looking for a self-directed solo 401k with premium features, the TD Ameritrade Solo 401k gives you a solid retirement plan with a wide range of investment options into traditional assets.

The account comes with only a pre-tax account, so you cannot contribute any dollars into a Roth solo 401k. A self-directed solo 401k plan that comes with a Roth option would normally allow you to contribute up to $22,500 for 2023 into a Roth account. If they also offer a mega backdoor Roth solo 401k, like the Ocho Solo 401k, you would be able to contribute up to $66,000 into a Roth solo 401k for 2023 ($73,500 if you’re at least 50 years of age).

If you’re looking for a Roth account, and the ability to invest your solo 401k into alternative asset classes, here’s a list of the best solo 401k plan providers (including self-directed plans). You can also learn more about the Ocho Solo 401k here.