Simple IRA Contribution
Hello-
Client had an old Simple IRA account. They made a contribution directly to the account instead of to a Traditional IRA. I am struggling to find if that is allowed or not. Any thoughts?
Thank you!
Hello-
Client had an old Simple IRA account. They made a contribution directly to the account instead of to a Traditional IRA. I am struggling to find if that is allowed or not. Any thoughts?
Thank you!
Permalink Submitted by Alan - IRA critic on Thu, 2022-04-28 21:57
A contribution to a SIMPLE IRA cannot be a traditional IRA contribution. Is client self employed or was the old SIMPLE IRA sponsored by a former employer? If not eligible for a SIMPLE IRA contribution, the contribution will have to removed as an excess contribution. It cannot be recharacterized in any form.