Skip to main content
No. of Recommendations: 0
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.
Print the post Back To Top
No. of Recommendations: 0
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
Print the post Back To Top
No. of Recommendations: 0
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
Print the post Back To Top