SIMPLE iRA 2 Year Rule – Date of first contribution or tax year of first contribution?
Is the date of the first contribution the “tax year” or actual date of deposit?
For example, a contribution was made in March of 2015, would the first available day of the 2 year rule be April 2017 or January 2017? Is the 2 year rule based on the tax year of the first deposit or the actual day or the first deposit?
If it is tax year, I assume if the first deposit was made in March 2015 for the 2014 tax year, then 2014 would be the start date, not 2015.
Thanks for your help.
Permalink Submitted by Alan - IRA critic on Sat, 2016-11-12 02:25
The date of the contribution starts the 2 year period. If first paycheck with a contribution was on 3/15/2015, a rollover out to a TIRA can be done as of 3/16/2017.
Permalink Submitted by Matt Groome on Wed, 2016-11-16 22:34
Thank you!
Permalink Submitted by Earl Downing on Fri, 2017-09-15 20:03
Does a Simple IRA have to atleast 2 years old to RECEIVE rollovers. I could not find the support for this.
Permalink Submitted by Earl Downing on Fri, 2017-09-15 20:03
Does a Simple IRA have to atleast 2 years old to RECEIVE rollovers. I could not find the support for this.
Permalink Submitted by William Tuttle on Fri, 2017-09-15 21:22
Rollovers to SIMPLE retirement accounts. You can roll over amounts from a qualified retirement plan (as described under Rollovers, later) or an IRA into a SIMPLE retirement account as follows:
A bigger question is why would an individual want to rollover from an IRA to a SIMPLE IRA when they have full control over fees and investments at any number of traditional IRA custodians. I have yet to see an employer SIMPLE IRA plan that offers better options than the general IRA marketplace.