[quote=”lisa.lamarche”]Can a Simple IRA that was opened greater than 2 years ago be transfered to an individual 401k without penalty? Thanks[/quote]

Just to add …The two year period starts when the SIMPLE is first funded with a SIMPLE contribution and not when the account is opened (unless both dates are the same).
For instance, an individual may open a SIMPLE today, but the first contribution is deposited on August 1, of 2009…in that case, the 2-year period starts August 1, 2009. ( example is assuming the employer chose the nonelective option and the employee did not make a salary deferral contribution. The employer has tax filing deadline, including extensions to make nonelective contribution). See http://www.retirementdictionary.com/2-year-rule-SIMPLE-IRA.htm

You may be thinking…[i]It makes no sense that such an account would be opened this early[/i], but it happens quite often 🙂 .

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