SEP IRA

Posts Tagged ‘simple ira rules for employers’

Question: SIMPLE IRA from a Former Employer?

I quit my job in October and was wondering if my former boss is still required to make his end of the Contribution for 2009. He typically makes his Contribution for the previous year in April, but I wanted to transfer the money into a ROTH IRA. Does anyone know the rules or have any suggestions?

Answer: That would be spelled out in the plan documents, which govern your SIMPLE IRA. Call your boss, your plan administrator, or your HR dept.

Key Investments for Middle-Class Families

Question: IRS Rules about substantially equal premature IRA withdrawals???

Hypthetical situation: I’m 45 and have enough money in my Roth IRA to retire. Is it really as simple, as using the life expectancy table and dividing my balance by that number each year to withdraw from my Roth so I can never work again? No penalty for early distribution, and no taxes since it is a Roth?

Answer: That is generally correct. Of course, with IRS rules there are additional hoops to go through.

Read the details in IRS Publication 590 (Individual Retirement Arrangements), Roth IRAs, starting with “Are Distributions Taxable?” (starting on p. 65)

http://www.irs.gov/pub/irs-pdf/p590.pdf

What is a SIMPLE IRA? By John Colegrove