Individual Retirement Accounts » SIMPLE IRAs

SIMPLE IRA Rollovers

Rollovers may be made from one SIMPLE IRA to another SIMPLE IRA. However, a rollover from a SIMPLE IRA to another retirement vehicle within the first 2-years of the first contribution is allowed only if the shareholder has a 72(t) exception reason which is considered roll-able (i.e., death (spouse), disability, over age 59-1/2).

72(t) exception reasons, which are not considered roll-able are:

» Death (non-spouse)
» RMD
» Substantially Equal Periodic Payments

A rollover within the two-year period without the exception reason would be considered to be a distribution from the SIMPLE IRA and subject to a 25% penalty. Additionally, this amount, when rolled to an IRA, is viewed as a contribution to the IRA and not a rollover.