In service 60 day rollover from a SIMPLE IRA
Can a business owner with a SIMPLE IRA do an in-service 60 day rollover while still working at her company that sponsors the plan. The goal being able to use the money and then put the money back in. Is there any other options that might work for an inservice withdrawal that could be replaced into the plan?
Permalink Submitted by Alan - IRA critic on Tue, 2016-05-10 20:16
The distribution can be rolled into another SIMPLE IRA, but not back into the same SIMPLE IRA (per Sec 408(d)(3)G). The one rollover rule for all IRA accounts also applies.
Permalink Submitted by David Mertz on Tue, 2016-05-10 23:25
408(d)(3)(G) says that a distribution from a SIMPLE IRA within 2 years of the first contribution made to that SIMPLE IRA can only be rolled over to another SIMPLE IRA, not to any other retirement account. After 2 years have passed since the first contribution to the SIMPLE IRA from which the distribution is being made, the restriction of 408(d)(3)(G) does not apply.