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Author: jkrou Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121268  
Subject: Re: Simple IRA/ change of trustee Date: 2/17/1999 12:12 PM
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Wow....this doesn't make any sense at all. You SHOULD have been able to "roll over" your Simple without tax or penalty. Perhaps I'm not following your post, but something just doesn't seem right here.

Roy, you are right that this does not sound right or make sense. The way that tax law is currently written, a SIMPLE IRA cannot be "rolled" into anything other than another SIMPLE for the first 2 years after the initial contribution. After the 2 year rule, it can be rolled to a traditional IRA without the 25% penalty. It is the 2 year rule that these folks got hooked into, and as far as I have seen there is not a way around avoiding the 25% penalty if you do something with the SIMPLE IRA prior to the 2 years. Hope that this helps, Jenn
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