SEP IRA

Archive for October, 2006

Question: Questions about SIMPLE plan. Which of the following statements is/ are correct?

Taylor, age 25, works for Pbay. Pbay adopted a SIMPLE plan 6 months ago. Taylor made an elective deferral Contribution to the plan of $8k and Pbay made a matching Contribution of $2.4K. Which of the following statements is/are correct?
1.Taylor can withdraw his entire account balance without terminating employment,
2.Taylor can roll his SIMPLE IRA into his Traditional IRA
3.Taylor will be subject to ordinary income taxes on withdrawals from the SIMPLE.
4.Taylor will be subject to a 25% early withdrawal penalty on amounts withdrawn from the SIMPLE.

a.1 and 2
b.1 and 3
c. 2,3, and 4
d. 1,3 and 4

thank you very much!!!!!
i think the answer is d too

Answer: I too think its B. To get a better answer visit

http://www.missouribusiness.net/irs/sections/section11/simplefaqs.htm#15

Question: Traditional IRA transfer to SIMPLE IRA…is it possible?

Answer: IRA (Irish Republican Army) Go fighting Irish.
I support the IRA. SLIGO and ROSCOMON here.

Can I Transfer Old IRA/401K Funds Into MY SD IRA/401K?

Question: timing for rollover 401K to IRA?

I have lots of money in my 401K from my last employer whom I retired from 2 years ago. I want to transfer these funds into a managed IRA. But I have been told by uninformed sources that I can withdraw from a 401k with no penalty but once I transfer to a ira I cannot do so. I will need sufficient funds middle of next year to purchase my condo (the fee simple option has been offered-only hawaii residents understand this) I become 59 1/2 at the end of the year. so I have been advised that I should keep my funds in the 401k withdraw what i need to make my purchase and then transfer the remaining fund to a managed IRA with a brokerage firm .

Answer: Why all the confussion?

Distributions from 401(k)s are NOT subject to the same rules as distributions from IRAs.

ERISA rules allow for penalty free distributions to be made from 401(k)s at age 55 provided you seperated from service with that employer after age 55.

IRAs are subject to the 59.5 age requirement….401(k)s allow for this age 55 exception.

It sounds to me as if your “uniformed” source was quite accurate and “informed.” (certainly more so than these other folks that posted answers about pre-59.5 penalties on 401(k) distributions).

Can MY SD IRA/401K Take Out a Mortgage on a Rental Property?