Vanguard is selling off their Individual 401(k), Multi-SEP, and SIMPLE IRA Plans to a company called Ascensus. The companies were always linked, and now these accounts are fully migrating to Ascensus.
A lot of people prefer using the larger companies for their accounts. And many people signed up with Vanguard to have all of their balances in one login which will no longer be the case once the sale is complete.
Also worth noting that a lot of people had their 401k’s free of any fees with Vanguard due to their balance holdings making them eligible for fee waivers. Ascensus will charge $20 per Vanguard fund per year.
A reader pointed out we never posted about this yet. The change is in the process of being fully implemented in the coming days, and so I thought it worth a quick post. Personally I’d switch over to Fidelity (for traditional 401k) or Schwab (for those with Roth 401k) to avoid the Ascensus fees.
Chuck
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