Simple IRA rollover to regular IRA
I have a client with a simple ira that he is still contributing to. Is there any restriction on taking a partial transfer to his regualr IRA from the simple? He will continue to fund his simple.
I have a client with a simple ira that he is still contributing to. Is there any restriction on taking a partial transfer to his regualr IRA from the simple? He will continue to fund his simple.
Permalink Submitted by Anonymous (not verified) on Tue, 2009-02-24 21:01
There is one major restriction. He cannot transfer any funds out of the SIMPLE IRA until two years have passed from the date of his first participation in the SIMPLE IRA. A transfer prior to that will be taxable and incur a 25% early withdrawal penalty unless transferred to another SIMPLE IRA account.