SIMPLE IRA 60 DAY ROLLOVER RULE??
I HAVE A CLIENT WHO WISHES TO WITHDRAW FUNDS FROM HER SIMPLE IRA AND REPLENISH THE WITHDRAWAL WITHIN 60 DAYS.
IS THIS PERMISSABLE?
RESPECTFULLY YOURS,
BERNARD A. FAGNANI CPA
I HAVE A CLIENT WHO WISHES TO WITHDRAW FUNDS FROM HER SIMPLE IRA AND REPLENISH THE WITHDRAWAL WITHIN 60 DAYS.
IS THIS PERMISSABLE?
RESPECTFULLY YOURS,
BERNARD A. FAGNANI CPA
Permalink Submitted by Alan Spross on Fri, 2008-12-26 22:47
No, she cannot simply roll the amount back to the same SIMPLE IRA, as she could do with a TIRA. More importantly, has she met the 2 year requirement from the date she first participated in the SIMPLE IRA? If not, she has a taxable distribution subject to the higher 25% early withdrawal penalty (no penalty if over 59.5).
If she has another SIMPLE IRA, she can get around the above by rolling it into the other SIMPLE IRA. Or if she has met the 2 year holding period, she can roll it into a traditional IRA tax and penalty free.
Permalink Submitted by charles lore on Tue, 2008-12-30 00:38
Just wondering why she cannot do a 60 day rollover out of SIMPLE A and back to A yet she could do it out of SIMPLE A but to SIMPLE B. Does it have to do with a presumption that A is and active employment plan and B is not.
Also what would the answer have been it it were SEP A and/or SEP A,B?