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Author: glennash Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: SIMPLE - IRA Date: 1/31/2000 10:31 PM
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My employer has recently ended a SIMPLE-IRA program
and gone to a 401K. What can I do so I will be able
to continue contributions to these funds.
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Author: W401K Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 18559 of 75383
Subject: Re: SIMPLE - IRA Date: 2/1/2000 9:07 AM
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The SIMPLE IRA is yours to keep. All contributions are 100% vested at the time they are made. As far as future contributions, since you are "eligible" for a 401k Plan, you cannot make deductions to a Traidtional IRA that will be eligible for tax deductions unless your income is below certain levels depending on your filing status. Your best bet is to contribute to teh 401k at least as much as the employer match.
You may also want to consider converting the old SIMPLE to a Roth and making contributions to the ROTH after you've contribute to the 401k.

Bill

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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 18568 of 75383
Subject: Re: SIMPLE - IRA Date: 2/1/2000 3:33 PM
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Greetings, Glennash, and welcome. You wrote:

<<My employer has recently ended a SIMPLE-IRA program and gone to a 401K. What can I do so I will be able to continue contributions to these funds. >>

After the account has been open for two years, you may move it to a traditional IRA or convert it to a Roth IRA to which you may make contributions. Until then, you just have to wait because if you try to move that money before two years are up, then you will be assessed a 25% penalty on the contents. In the interim, you may use the new 401k and make contributions to any other IRA.

Regards..Pixy

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