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Ocho vs Vanguard
Contribute up to $61,000, invest in any asset class with tax-free compounding, and make Roth contributions up to $20,500 for 2022 – all for just $299/year, with no fees for your assets under management.
How the Ocho Solo 401k is better suited for you
Enjoy the highest contribution limits, a mega-sized Roth account, tax-free compounding, and an integrated bank and investment platform built directly into Ocho. Get all the benefits of the Ocho Solo 401k for just one low yearly fee.
Invest in any asset class
The Vanguard Solo 401k only allows you to invest in Vanguard mutual funds. You can’t invest in individual stocks, ETFs, or alternative assets. With Ocho, you could invest in any asset class, including alternative assets like crypto, real estate, and private equity.
Mega backdoor Roth solo 401k
The Ocho Solo 401k offers a mega backdoor Roth solo 401k, while the Vanguard Solo 401k does not. With a mega backdoor Roth, you can put away up to $61,000 entirely into a Roth solo 401k for 2022, instead of being bound by the regular $20,500 limit.
Modern interface
Ocho has the most modern, intuitive solo 401k user experience. You can fill out & sign documents, make contributions, and invest your solo 401k funds directly from within the app. If you need help, customer support is always readily available to assist you.
| Features | Ocho Solo 401k | Vanguard Solo 401k |
|---|---|---|
| Cost | $299/year for unlimited investments. | Free to set up, $20/fund per year. Each fund you invest in adds $20/year to your bill (waived if you have over $50,000 in qualifying Vanguard assets). |
| Roth option | Yes | Yes |
| Mega backdoor Roth | Yes | No |
| Investment options | Any asset class | Only Vanguard mutual funds |
| Alternative investments | Yes | No |
| Checkbook control | Yes | No |
| Rollovers | Yes, from most retirement plans | Only IRAs |
| Invest in crypto | Yes | No |
| Invest in NFTs | Yes | No |
| Invest in traditional assets | Yes, all traditional assets including any individual stocks, ETFs, mutual funds, and bonds. | Yes, but only Vanguard mutual funds |
| Invest in real estate | Yes | No |
| Invest in private equity | Yes | No |
Why business owners love the Ocho Solo 401k
The Ocho Solo 401k has everything you want in a retirement investment account including the highest contribution limits, full flexibility and control over your tax benefits, dedicated onboarding and compliance support, and checkbook control to invest in any asset class, including alternative assets like crypto, real estate, and private equity.
The highest contribution limits
Contribute up to $61,000 for 2022 and $66,000 for 2023. That’s 10x higher than an IRA and 3x higher than a regular 401k. Invest up to $20,500 into a Roth account and get tax-free withdrawals in retirement.
Integrated bank and investment platform
We made it incredibly simple to make contributions and start investing your solo 401k funds. Set elections, make contributions, and invest in assets directly through the app.
Invest in alternative investments
The Ocho Solo 401k comes with checkbook control, allowing you to invest in any asset class including alternative assets like real estate, crypto, NFTs, and private equity.
Full onboarding and compliance support
The solo 401k is traditionally a hassle to set up, with many moving parts, compliance checks, and a mountain of paperwork. With Ocho, it’s over before you know it through our simple sign up flow.
Prototype vs non-prototype plans
The Vanguard Solo 401k is a prototype plan, while the Ocho Solo 401k is a self-directed, non-prototype plan. Prototype plans are offered at a lower cost because they come with minimum features and restricted investment options.
A self-directed solo 401k, like the Ocho Solo 401k Plan, offers full investment control and flexibility in tax benefits each year. You can generally do more with a non-prototype plan, such as invest your funds into a Roth account, rollover assets from other retirement accounts, and perform a mega backdoor Roth solo 401k.
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).