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<<I am mystified by why anyone would want to bother with a conduit IRA, since so many posts here and on the tax folder are concerned with how to get the money OUT of a 401(k) or 403(b)(?) because of the lousy investment options. Is there even one 401(k) plan that offers BETTER investment choices than those available in any decent broker-sponsored self-directed IRA? Why would anyone wish to transfer hard-earned funds back into a 401(k) or, worse, a 403(b)>>

Because some folks prefer leaving the management to someone else or perceive a better opportunity within a plan as opposed to outside of it. The conduit IRA leaves that option open. Anyone who even thinks it's a remote possibility they may one day want to deposit those funds in a new employer's plan should use the conduit. It just makes sense not to close your options needlessly. Nothing prevents them from self-directing in the conduit, either.


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