Simple IRA contribution for former employee
A client received notification from his former employer indicating that they owe him $450.01 of additional funds for his Simple IRA from last year. However, he has since closed and transferred his Simple IRA account to a regular IRA. How should this former employee receive the money owed…does he need to reopen a Simple IRA in order to receive the funds, or can the $450.01 be directly deposited into his regular IRA?
Thank you!
Permalink Submitted by Alan - IRA critic on Wed, 2018-02-07 22:59
Since a SIMPLE IRA contribution can only be made to a SIMPLE IRA, he or the employer needs to re open the SIMPLE IRA long enough to receive the contribution, and client can then immediately roll it into the TIRA.