Can funds be rolled over or transferred from a SIMPLE IRA to another IRA?
To qualify as a tax-free rollover, a rollover distribution (or a transfer) made from a SIMPLE IRA requires a minimum two years of participation in the employer’s plan. The two-year period begins on the first day on which employer contributions are deposited into the SIMPLE IRA. Tax-free rollovers can be made to: • Another SIMPLE IRA • A qualified plan • A tax-sheltered annuity (Section 403[b] plan) • A state or local government deferred compensation plan (Section 457 plan) Consult your tax advisor for more information.
