SIMPLE IRA rollover

Submitted by Robert Wright on Mon, 2009-12-14 21:06

I have a SIMPLE IRA at my current employer.
I have been enrolled in the SIMPLE for more than 2 years.

Can I rollover a portion of the SIMPLE IRA to a self-directed IRA with tax and penalty?



Submitted by Alan Spross on Mon, 2009-12-14 21:27

After two years you can roll it over to a TIRA with no tax or penalty due. If you convert it to a Roth IRA, then taxes will be due.

Submitted by Robert Wright on Mon, 2009-12-14 21:32

Thanks Alan.

I meant to say “without” tax and penalty.

So, I can rollover a portion of the SIMPLE IRA to a TIRA and still keep and contribute to the SIMPLE IRA.

Submitted by Alan Spross on Mon, 2009-12-14 22:42

Right.

Submitted by Robert Wright on Tue, 2009-12-15 14:17

Alan,
Once I have two years in the plan, are ALL dollars available to transfer to a TIRA tax & penalty free?
In other words, can I move money that has been in the plan less than 2 years as well as money that has been in the plan 2 years or more?

Thanks.

Submitted by Alan Spross on Tue, 2009-12-15 20:50

After 2 years, all dollars are available for rollover tax and penalty free, including those contributed less than two years ago.

Submitted by Robert Wright on Wed, 2009-12-16 17:04

Thanks Alan.

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