Contribute to two custodians for 1 simple IRA
My client works for ABC, INC who has a Simple IRA for their office.
My client wants to contribute half of her contribution to a Simple IRA at Fidelity, and the other half to one at Schwab.
If the employer allows it, can she have them send separate checks to Fidelity and Schwab as long as she doesn’t contribute more than the annual maximum of $19,500 ? (she’s over 50)
Permalink Submitted by Alan - IRA critic on Wed, 2024-05-15 22:11
I don’t see anything specific limiting the number of SIMPLE IRAs from the IRS, but I would expect that the employer would not agree to the split contributions and completing two 5304 SIMPLE forms, as that defeats the purpose of a SIMPLE IRA, ie. to be simple. Splitting the contributions would also be a unique and therefore error prone arrangement that should probably be avoided.
Permalink Submitted by Jon Steffen on Thu, 2024-05-16 14:01
That is what I was thinking as well. Thank you for your expert guidance as always.