SEP IRA

Archive for August, 2009

Question: Once my SIMPLE IRA is rolled over to a Roth, will I still be able to get my employer match?

How does it work? Does a conversion close my SIMPLE IRA or will I still be able to contribute with an employer match?

Answer: The only time you are able to roll your SIMPLE IRA to a Roth IRA is if you are no longer an employee of the company. Therefore you can not continue investing with a employer match.

If you are no longer working for the company and still plan on rolling your Simple to a Roth IRA keep in mind that your SIMPLE IRA is funded with pretax money. Meaning you didn’t pay taxes on the Contribution. When you convert it to a Roth IRA, which is only funded with after tax money, you are required to pay the taxes on it.

Free Roth IRA Conversion Analysis