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Ocho Solo 401k vs TD Ameritrade Solo 401k

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Ocho vs TD Ameritrade

Get up to $61,000 in tax deductions for 2022, or contribute up to $20,500 into a Roth account. Invest your funds in any asset class, with no fees on your assets under management.

How is Ocho different from the TD Ameritrade’s Solo 401k?

TD Ameritrade has been acquired by Charles Schwab and TD solo 401k accounts will soon become Schwab accounts and share the same features. TD and Schwab are both prototype solo 401k plans, with free account set ups. You’ll get a pre-tax account and access to a wide range of traditional assets like stocks, mutual funds, bonds, and ETFs. The downside is that you’ll have no premium solo 401k features like a Roth account, mega backdoor Roth, or a modern user interface like you get with the Ocho Solo 401k.

Invest beyond traditional assets

With Ocho, you can invest your solo 401k funds in any asset class, including crypto, real estate, and private equity. You can also invest in traditional assets like stocks, bonds, mutual funds, and ETFs directly within your dashboard.

A Roth solo 401k

A Roth solo 401k is powerful because you get tax-free withdrawals in retirement. When you sign up with Ocho, you get both pre-tax and Roth solo 401k accounts. With TD Ameritrade, you’re limited to only a pre-tax solo 401k, without a Roth option.

A smoother user experience

Signing up to a solo 401k requires more paperwork and compliance checks than other retirement plans. You’ll have to sign dozens of documents and even open separate bank and brokerage accounts. With Ocho, you can sign up and get started in under 10 minutes.

FeaturesOcho Solo 401kTD Ameritrade Solo 401k
Cost$299/year for unlimited investments.Free to set up.
Roth optionYesNo
Mega backdoor RothYesNo
Investment optionsAny asset classOnly traditional assets like stocks, mutual funds, ETFs, bonds.
Making contributionsOnline through the Ocho appSubmit a deposit form online or through snail mail
Alternative investmentsYesNo
Checkbook controlYesNo
RolloversYes, from most retirement plansNo
Invest in cryptoYesNo
Invest in NFTsYesNo
Invest in real estateYesNo
Invest in private equityYesNo

Is Ocho better than TD Ameritrade?

The Ocho Solo 401k is a different kind of solo 401k plan than TD Ameritrade’s. Ocho is a premium self-directed plan. You get full onboarding and compliance support, a modern, re-imagined user interface and signup flow, and all the best premium features of a solo 401k plan, like a Roth account, mega backdoor implementation, and the ability to invest in any asset class beyond traditional assets.

Contribute 10x more than an IRA

Contribute up to $61,000 for 2022 and up to $67,500 if you’re at least 50 years of age. That’s 10x larger contribution limits than an IRA, which only gives you $6,000 in contribution room for 2022.

Choose between pre-tax and Roth

Unlike TD Ameritrade, Ocho gives you both pre-tax and Roth solo 401k accounts. That means you get to choose your tax advantage each year. Choose pre-tax to get a tax deduction for the year (up to $61,000) or choose Roth to get tax-free withdrawals in retirement.

Mega backdoor Roth

Not available with TD Ameritrade. Ocho can implement a mega backdoor Roth solo 401k for anyone who wants to contribute up to $61,000 into their Roth accounts for 2022. That’s almost 3x higher than the typical limit of $20,500.

Invest your funds in any asset class

With TD Ameritrade, you can only invest in what TD Ameritrade offers on their platform. Ocho comes with checkbook control, which means you get to invest in any asset class (including alternative assets) by writing checks or funding accounts directly from your solo 401k.

A modern user interface

A solo 401k has historically been a pain to set up. There’s more paperwork involved, and more compliance checks to make sure you’re eligible. Perhaps the best part about Ocho is how easy it is to set up your account, make contributions, and start investing your funds. You can open an account in under 10 minutes, and start investing right away through the integrated bank and investment platforms within the app.

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.

$299 Annually

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).