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Tips for S1 going into first busy season?
I’m starting to understand why people hate auditors.
Advantage: more diverse investment options, potentially less in fees.
Disadvantage: if you need to do Backdoor Roth IRA contributions and you have any Traditional 401k funds being rolled over, it makes your taxes a bigger headache.
It’s more than a headache it’s really not economic if the person has more than a nominal amount.
For example $100k in a 401k rolled over would make a backdoor 94.5% taxable… not worth it.
If it Roth, an IRA will give you more options and flexibility to withdraw. If traditional, keeping it in a 401k may be better if you contribute to a Roth IRA and may need to do backdoor Roth IRA in the future