SIMPLE 5305 vs 5304
Good Morning
An interesting question was posed to me this morning.
Situationn:
Client sponsors a SIMPLE IRA using 5305-SIMPLE form.
Is the client permitted to change SIMPLE providers mid-year?
Or
Do they have to wait until 2013 to change providers (due to using form 5305)?
Thank you
Permalink Submitted by Alan Spross on Sat, 2012-06-16 02:03
Enployer cannot change to a 5304 midyear as indicated in the following. While it does not clearly address changing a designated custodian (still a 5305) midyear, it does not seem consistent with the other material to allow such a change:
http://www.irs.gov/retirement/article/0,,id=255770,00.html