Simple Transfer
I have a Simple IRA with employer match up to 3%. I HATE the local brokerage that my employer uses. They won’t contribute elsewhere. I’d like to do an annual transfer to my local brokerage; however, this can only be done on a Simple to Simple basis.
Can I open another Simple that my employer won’t be directly participating in? Or am I stuck doing a rollover?
Permalink Submitted by Alan Spross on Fri, 2010-02-19 02:46
Are you still within the two year SIMPLE IRA holding period?
Permalink Submitted by Paul Anderson on Fri, 2010-02-19 11:13
I’m out of the two year period.
Permalink Submitted by [email protected] on Fri, 2010-02-19 14:09
Since you are beyond the 2 year holding period, you can transfer the funds directly to an IRA (does not need to be a simple). Just be aware of the once per year (12 months, not calendar year) rollover rule if you are taking a distribution and rolling it over. It would be best to do a trustee to trustee transfer directly from the Simple to the IRA, therefore avoiding any potential conflicts with this rule.