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Level 1
posted Apr 12, 2022 4:50:56 PM

401K rollover to a simple IRA

I did a complete rollover from my company sponsored 401K (after a layoff) to a simple IRA which I then had to cash out to pay some expenses incurred while unemployed. It looks like I'm getting hit for taxes twice. Is there something I'm missing since it's the same money?

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1 Replies
Expert Alumni
Apr 12, 2022 5:50:22 PM

The rollover of funds to the simple IRA is not taxable, as it is from one tax-deferred retirement account to another. Only the distribution from the Simple IRA is taxable.