Client has an existing Traditional IRA (fund were rolled over form a SIMPLE IRA) that is invested in an annuity. He wants to exchange the annuity in this existing IRA for another annuity with much better returns but there is a minimum purchase for this new annuity and the existing IRA is 6,500.00 short. He still has a SIMPLE Plan but he wants to contribute the 6,500.00 from an IRA contribution. His income is over the limit to make a deductible IRA contribution. He would like to make an nondeductible contribution to this existing Traditional IRA that has the annuity. Is this permitted? If not, can he add to the Traditional IRA with a 6,500.00 rollover from his SIMPLE Plan? He prefers the first option.

Thanks,
Bill Snyder
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