If you have a pre-existing IRA or rollover 401k plan and you’re thinking about transferring the funds into a Simple IRA rollover plan, you’re probably wondering whether or not there are any restrictions or exclusions on rollovers completed to these plans. Unfortunately, the truth is that you can’t rollover a Roth IRA, an SEP IRA or a traditional IRA into a Simple IRA account. Nor can you complete a Simple IRA rollover if you’re planning on moving money from a pre-existing 401k rollover plan. The only type of IRA that can receive monies in a rollover from a Simple IRA is another Simple IRA plan. (more…)
Posts Tagged ‘Roth IRA’
What are the Benefits of Performing a Simple IRA Rollover?
Posted by admin on March 31st, 2010
The benefits of performing a Simple IRA rollover are, in essence, generally the same as performing any IRA rollover – you get to maintain your money in a tax deferred state, while moving it to a more advantageous investment vehicle.
A Simple IRA allows you to build retirement savings using tax deferred money; this is true for all qualified retirement plans and IRAs, except Roth IRAs. A rollover from a Simple IRA to another qualified IRA maintains the tax deferred status of your money, which is generally considered to be desirable by IRA participants. Of course, if you rollover money from your Simple IRA into a Roth IRA, you will be required to pay taxes on that money, because Roth IRAs – unlike Simple IRAs – are funded with post-tax dollars. (more…)
