SIMPLE set up as SEPP
L1: SIMPLE set up as SEPPHello,
I have a SIMPLE plan with Vanguard currently and was considering including this with my SEPP plan. I’m assuming I would have to roll it over into an IRA to have it be included with my other IRA’s? The SIMPLE has been in effect for about 10 years now. Would there be a penalty for rolling it over & then accessing that money right away? I am 55 and intend on starting on May 1st.
Thanks2010-03-24 14:43, By: Bruce M, IP: [126.96.36.199]
L2: SIMPLE set up as SEPPSince your SIMPLE IRA has met the two-year requirement, there is no penalty for moving it (or a portion of it) to another IRA. When moving the assets, be sure to move it as a transfer ( nonreportable movement of funds between the two IRAs), instead of as a distribution/rollover- just in case you need to do another rollover from the account within the next 12-months.
2010-03-27 23:09, By: Denise Appleby, IP: [188.8.131.52]
L3: SIMPLE set up as SEPPPlease clarify. 1. Are you asking if you can transfer your SIMPLE to a present IRA or new IRA before starting a SEPP 72-T plan ? YES YOU CAN2. Do you already have a SEPP 72-T plan, and want to add your SIMPLE to the paln universe ? NO YOU CANNOT2010-03-27 23:42, By: dlzallestaxes, IP: [184.108.40.206]
L4: SIMPLE set up as SEPPHello. Thanks for your reply’s. The answer is #1, I haven’t set up the SEPP yet.2010-03-28 11:16, By: Bruce M, IP: [220.127.116.11]
L5: SIMPLE set up as SEPPBruce,I noticed you plan to start on 1st of May. If you are taking monthly payments, which I prefer after first trying my 72t with Qtrly payments for 2 years, and thenswitching to monthly, I would recommend that you set up payments to start on either the 3rd or 4th of each month, to avoid any year end issues (like 2009) when 1st of JAN 2010 was Friday and a holiday, and 2nd was a Saturday, and 3rd was a Sunday. Many banks and other financial institutions will issue that payment the day before the holiday (or the long holiday weekend in this case) rather than waiting to issue it on the 4th, so that (13th payment in 2009)would be dated 12/31/09. They usually don’t list it as part of the 2009 total on your 1099-R, but if they did, you would have a problem.KEN2010-03-28 14:11, By: Ken, IP: [18.104.22.168]
L6: SIMPLE set up as SEPPOK, thanks for the tip Ken.2010-03-28 16:57, By: Bruce M, IP: [22.214.171.124]