SIMPLE IRA – “2-year rule”
Good Morning
Facts:
SIMPLE IRA participant satisfied the 2-year hold period
Particpant subsequently takes a full withdrawal
Participant contiues making salary deferrals (same employer)
Question
Does the 2-year hold period start over again due partiicpant taking a full withdrawal?
I am under the impression the withdrawal has no effect on the 2-year hold period. Confirmation is needed.
Thank you
Permalink Submitted by Alan - IRA critic on Tue, 2013-04-02 18:15
You are correct. The holding period does not reset and therefore participant can take additional distributions whenever he wishes.