Direct Transfer to Inactive SIMPLE IRA
If a client has a SIMPLE IRA from a previous employer, can they initiate a Direct Transfer to this account. I know they can not make ongoing contributions.
Thank you.
If a client has a SIMPLE IRA from a previous employer, can they initiate a Direct Transfer to this account. I know they can not make ongoing contributions.
Thank you.
Permalink Submitted by Alan - IRA critic on Mon, 2024-12-30 10:44
Yes, after 2 years has passed from the date of the first SIMPLE contribution.
Typically, it is the SIMPLE balance that is transferred out to different plans because many SIMPLE IRAs are housed at firms with high expenses.