SIMPLE IRA and Roth together

Submitted by Anthony Zalesky on Fri, 2019-02-22 20:35

A person leaves an employer which had a 401k plan and the new employer has a SIMPLE-IRA plan. Can the person transfer the previous kplan into the SIMPLE plan as soon as possible or must the person work there for two years before doing the direct transfer?



Submitted by Alan - IRA critic on Fri, 2019-02-22 21:06

  • Two years must have passed from the date of the first SIMPLE IRA contribution before funds are transferred into the SIMPLE from any plan other than another SIMPLE IRA.
  • The person should carefully check the fees and expenses for the SIMPLE IRA before rolling any funds into the SIMPLE IRA after the two years has passed. Many SIMPLE IRAs, particularly 5305 SIMPLE plans have high expenses and rollover to a TIRA would be preferable to access low cost choices.

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