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Ocho vs Charles Schwab
Launched in 2022, Ocho is a modern solo 401k platform with full onboarding and compliance support, integrated bank and investment platforms, and the ability to contribute up to $61,000 and invest it with tax-free compounding into any asset class (including alternative assets).
How is Ocho different from the Charles Schwab Solo 401k?
Charles Schwab offers a basic solo 401k plan that’s free to set up, but lacks many features compared to the Ocho Solo 401k Plan. Ocho offers both pre-tax and Roth accounts, while Charles Schwab only offers a pre-tax account. With Ocho, you can invest in any asset class, including alternative assets, while you can only invest in traditional assets with Charles Schwab. Furthermore, Ocho is a modern solo 401k experience, allowing you set up your account in under 10 minutes, make contributions and invest all through the Ocho App. Charles Schwab’s Solo 401k still requires you to mail in a physical check for contributions.
Ocho gives you checkbook control
With Charles Schwab, your investment options are limited to traditional assets within their platform. With Ocho, you get checkbook control over your investment account and can either invest in traditional assets directly from the Ocho app, or invest in alternative assets like crypto and real estate.
Ocho has both pre-tax and Roth
The Ocho Solo 401k Plan comes with both pre-tax and Roth accounts. You can choose your tax advantage each year (tax deduction vs tax-free withdrawals in retirement). You can also contribute 3x more into a Roth solo 401k using our mega backdoor feature. Charles Schwab only offers a pre-tax account.
Integrated platform with modern interface
With Ocho, the signup process is fast and simple, and can be done in under 10 minutes. You can set elections, make contributions, and invest your funds all directly through the app. Charles Schwab still requires that you mail in a check if you want to contribute money to your account.
| Features | Ocho Solo 401k | Charles Schwab Solo 401k |
|---|---|---|
| Cost | $299/year for unlimited investments. | Free to set up. |
| Roth option | Yes | No |
| Mega backdoor Roth | Yes | No |
| Investment options | Any asset class | Only traditional assets like stocks, mutual funds, ETFs, bonds. |
| Making contributions | Online through the Ocho app | Mail in a physical check |
| Alternative investments | Yes | No |
| Checkbook control | Yes | No |
| Rollovers | Yes, from most retirement plans | Only 401k plans, no IRAs |
| Invest in crypto | Yes | No |
| Invest in NFTs | Yes | No |
| Invest in real estate | Yes | No |
| Invest in private equity | Yes | No |
Why business owners love Ocho
The Ocho Solo 401k Plan offers all the best features of a solo 401k, and nothing you don’t need as a business owner. It’s designed to give entrepreneurs and freelancers the power and flexibility to choose their preferred tax advantage each year, and get mega-sized contribution limits compared to other retirement plans like a 401k or SEP IRA.
Choose your tax advantage
With Ocho, you can choose to get a tax deduction of up to $61,000 for 2022 or put the entire amount into a Roth solo 401k and get tax-free withdrawals in retirement. You can also mix and match, and allocate your funds based on what makes the most sense for you.
A modern all-in-one platform
Many free prototype plans, like Charles Schwab, still require that you mail in a physical check if you want to make a contribution. Ocho flipped the model completely, allowing you to make contributions, set elections, sign documents, and even invest your funds all within the Ocho app.
Access to alternative assets
Charles Schwab only lets you invest in traditional assets like stocks, bonds, and mutual funds. The Ocho Solo 401k is a self-directed plan, opening the door to asset classes beyond traditional assets. Easily invest in alternative asset classes like real estate, crypto, NFTs, and even private equity.
A mega-sized Roth account
Charles Schwab gives you a pre-tax account, but no option for Roth contributions. When you sign up with Ocho, you get both pre-tax and Roth solo 401k accounts. Contribute up to $20,500 into your Roth solo 401k, or up to $61,000 into your Roth solo 401k with our mega backdoor implementation.
Prototype vs non-prototype plans
Charles Schwab offers a free prototype plan, which is a basic solo 401k with minimum features. You don’t get a Roth account, no option for a mega backdoor Roth solo 401k, and you still have to mail in physical checks to make contributions.
Ocho is a modern take on the solo 401k plan. You’ll get all the best features, like a Roth account, mega backdoor, full onboarding and compliance support, and integrated bank and investment platforms.
Ocho is trusted and backed by the world’s top entrepreneurs, creators and money experts.
“The level of insight you get in terms of your money management is not something I’ve seen on any other apps I’ve used.”
3500
Early Stage Users
100+
Startup founders have invested in Ocho
$5M+
In preseed funding
Built by the team that built:
“The Ocho Solo 401k is a retirement plan so powerful and flexible that it feels like you’re getting access to a tax loophole.”
Elizabeth Yin
Cofounder, Hustle Fund
“Every business owner, creator, and self-employed person should have one. The benefits and tax savings each year are a no-brainer.”
Sebastian Fung
Owner, Ask Sebby
“Ocho built something I’ve wanted to exist for a long time – the modern solo 401k with all the best features and full admin support.”
Nate O’Brien
Investor & YouTuber
Transparent pricing with no AUM fees
Unlike other money managers, we charge zero fees on your money under management (AUM) and do not receive any kickbacks from any products we recommend.
All income levels and all business entities eligible
Any business owner, freelancer, creator, or even full-time employees with a side hustle can open a solo 401k. The only requirement is that you have no full-time W-2 employees that work over 1,000 hours in your business (excluding your spouse). There are no income limits – you’re eligible whether you make over $1M or operate a small side hustle.
One plan that fits all your needs.
The Ocho Solo 401k Plan Comes With
- Ownership of an Ocho Solo 401k Plan.
- A Roth solo 401k account
- Security & compliance monitoring.
- Personalized investment plan & recommendations.
- Support for a mega backdoor Roth conversion.
- A delightfully simple all-in-one investment platform.
- Full onboarding support and account administration assistance.
- Integrated bank & brokerage accounts (coming soon).
- Rollover support from other retirement plans that you already own.
- Access to any investment options, with full checkbook control (coming soon).