The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: Start a SEP again? Date:  9/29/1998  8:45 AM
Author:  TMFPixy Number:  5715 of 103780

Scott sez:

I just now saw evidence at the Waterhouse website that SIMPLE contributions can't be moved to a standard IRA for 2 years. Thus, you couldn't convert them to a Roth IRA for that length of time.

And if that two-year rule is violated, the distribution is taxed and penalized an additional 25% not 10% for early withdrawal. However, the two years begin on the date of the first contribution by the employer to the particpant's account, not from the date of any contribution. Thus, after the account has been open for two years, contributions may be transferred by the participant without fear.


Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us