Traditional IRA
Are there an issues transferring a traditional IRA to a SIMPLE IRA? What are the rules since SIMPLE IRA is an employee sponsored plan
Are there an issues transferring a traditional IRA to a SIMPLE IRA? What are the rules since SIMPLE IRA is an employee sponsored plan
Permalink Submitted by Alan - IRA critic on Wed, 2020-12-09 18:17
You can after 2 years from the date of your first SIMPLE IRA contribution, but not before. For most people, this is not to their advantage, particularly for a 5305 SIMPLE due to the usual high fees. Most SIMPLE IRA owners wait for the 2 year waiting period to be met, and then they transfer the SIMPLE balance to a traditional IRA. But it is legal to do the reverse if there is some perceived benefit.