setting up small business 401k in US if want to retire in Canada

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dobiedoc
Posts: 2
Joined: Thu Apr 06, 2023 12:37 pm

setting up small business 401k in US if want to retire in Canada

Post by dobiedoc »

Question: I am a small business owner in the US and setting up my US 401K plan (I have 5 employees) and retirement planning. If we want to return to Canada after retirement age (timeline 15-20 years), are there advantages to having the funds in after-tax funds (husband could open a solo 401K/Mega backdoor Roth as he is a 1099 independent contractor) or tax deferred (regular 401K) plans for Canada/US tax treatment? I can do a backdoor Roth. Also does anyone have experience in whether ETFs or index funds are better to make up the choices in the portfolio (ie would I want to choose VTSAX, VTIAX, VBTLX or VTI, VXUS, BND)? Any experience in dealing with Vanguard/ishare/Fidelity/Schwab for ease of transborder transition? I know that working with a financial advisor 3 years ahead of my move back is wise, but I need to decide this big question for 401K plan set-up this year. I am in my late 40s and dual citizen. Husband is 50 and Cdn Citizen with GC. Unsure (50:50%) of whether we will repatriate back to Canada or stay in the States (dependent on my teenager daughter and where she lands-who knows?).
dobiedoc
Posts: 2
Joined: Thu Apr 06, 2023 12:37 pm

Re: setting up small business 401k in US if want to retire in Canada

Post by dobiedoc »

Anyone?? Even if you could share your mistakes or things to avoid I would be so appreciative for your experience.
canfooter
Posts: 1
Joined: Fri Jun 16, 2023 2:34 am

Re: setting up small business 401k in US if want to retire in Canada

Post by canfooter »

Hi we are in the same boat. 30 years in US, newer Solo 401k. Wanting to understand the cost benefit of returning to Canada. Unfortunately it is all very complicated and there is a lot of conflicting and bad information out there. If you find any reliable source of information please share and I will do the same.
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