Rollover into a closed SIMPLE IRA?
Client opened a SIMPLE IRA in 2008. Did a trustee-to-trustee transfer in 2019 to another IRA so the SIMPLE IRA has a 0 balance but is still open on our system.
Client now wants to roll money from a 401(k) into his SIMPLE IRA.
Is this permitted?
Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2020-03-19 19:17
It’s permitted, but why wouldn’t he roll it to the current traditional IRA, or to a new traditional IRA? Most people can’t wait to transfer SIMPLE IRA balances out to traditional IRA accounts, especially if it was a high fee 5305 SIMPLE.