SIMPLE IRA Rollover in Year 1, Re-established in Year 2
I’d like to recommend a client rollover his existing SEP’s and SIMPLE’s into a Roth IRA during November of this year. These are various accounts, all started > 2 years ago, and none with contributions in 2011.
I’d then like to recommend he establish and fund a new SIMPLE IRA in 2012 (via the same company, which he owns, and for which only he and his spouse are employees).
Question: I’ve read about the need for a one-year alternative plan election period. Must he therefore wait until 2013 before establishing a new SIMPLE IRA?
Permalink Submitted by Alan Spross on Wed, 2011-11-02 03:28
Why does he want to start a new plan? He could leave $10 in one of the present SIMPLE plans after the conversion and just continue contributions and would not have to start another 2 year waiting period.