Distribution from SIMPLE IRA
Client established a SIMPLE IRA 3/2008…no longer contributing. Would like to rollover the SIMPLE IRA into a Traditional IRA. Is this possible? What are the stipulations? What penalties are there?
Client established a SIMPLE IRA 3/2008…no longer contributing. Would like to rollover the SIMPLE IRA into a Traditional IRA. Is this possible? What are the stipulations? What penalties are there?
Permalink Submitted by Denise Appleby on Wed, 2009-03-18 14:10
[quote=”[email protected]“]Client established a SIMPLE IRA 3/2008…no longer contributing. Would like to rollover the SIMPLE IRA into a Traditional IRA. Is this possible? What are the stipulations? What penalties are there?[/quote]
A movement of assets from a SIMPLE IRA to a traditional IRA is not permissible, unless it has been at least two years since the first contribution was made to the SIMPLE. The participant will need to wait until the two-year holding period has been met. See http://www.retirementdictionary.com/2-year-rule-SIMPLE-IRA.htm