SIMPLE to 403(b)
Client is employed by a 501(c)(3) which has a SIMPLE. He wants the ability to borrow from his retirement account. The SIMPLE has been in place for more than two years. Can he move it into a 403(b)? I assume he and his employer could continue to fund his SIMPLE.
Permalink Submitted by Alan Spross on Sat, 2010-02-06 22:01
That is correct. The SIMPLE balance can be tranferred to a current 403b plan IF the plan will accept IRA rollovers, and the SIMPLE IRA participation can continue as before.
Permalink Submitted by Al Fry on Sun, 2010-02-07 00:05
Of course when you use the word “borrow”, you must be referring to a 60-day rollover. Tecnically spaeking, one cannot borrow from their IRA.
Permalink Submitted by Alan Spross on Sun, 2010-02-07 00:19
Al, I think he was contemplating a 403b plan that allowed actual qualified plan loans and included the new balance in determining the maximum loan. Of course, this also seems to require that client has two jobs, since the SIMPLE is still active there would have to be another employer offering the 403b. The SIMPLE cannot be active alongside another plan.
Permalink Submitted by Al Fry on Sun, 2010-02-07 01:11
missed that point