My questions are: after this initial transfer can I have the Designated Institution automatically transfer all subsequent SIMPLE contributions into the Traditional IRA as they're deposited? Ask the institution. It would be easier if your employer made the contributions to the account you want them to go to.If so, are there any further restrictions on how I can treat those funds (future transfers, conversions, etc…)?NoIt appears this would effectively increase my yearly IRA contribution limit beyond the $3000 for my Roth (in 2003) by the limit I can put into a SIMPLE. That's the case today. The SIMPLE is a retirement plan, and contributions to it have no effect on your ability to contribute the maximum to a traditional or Roth IRA. (It does affect deductibility.)And if that's the case, it seems that after the 2-year period a SIMPLE IRA is no different than a Traditional once the contributions are made. (This sounds very much like how a SEP works—the topic of a question posted not long ago.)Correct. The SIMPLE is just the method of making the contributions.Phil MartiVITA Volunteer
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