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It sounds like this is a 5305-SIMPLE, where your employer establishes the account and then directs your salary deferral to it, along with his/her match or, if he so elects, his non-elective annual contribution.

After the initial 2 year period, you are free to transfer your account balance to whereever you wish without penalty....including your traditional IRA or to your Roth IRA, although this will be considered a Roth conversion, meaning the amount converted will be ordinary income to you for that year.

You should be able to set up a 5304-SIMPLE account with your favorate brokerage and do a direct transfer, if you wish this amount to maintain its ERISA unlimited protection from creditors, something you'll not have if you transfer it to your traditional IRA, where it is protected from bankruptcy creditors up to $1MM, but is not protected from legal judgements.

BruceM
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