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I currently have a Simple Ira through my current employer, and I am looking to convert some of that into a traditional IRA, can this be done without penalty?
So I have a Simple IRA, what i am wanting to know is
1)can i transfer funds to establish a traditional IRA, when i am still with the current employee offering the Simple IRA, with out penalty, all my research indicates the "2 year rule", is that 2 years after i leave my job, or 2 years after i opened my account?
I am past the 2 years since i opened my account.
2)If i am able to transfer these funds from one account to another, can I claim that amount I transfer, as a reduction in my taxable income, i.e. right now if i contribute 800 of my tax return to a Simple Ira, it reduces my taxable income for 2015 if I chose to claim it for that year
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I currently have a Simple Ira through my current employer, and I am looking to convert some of that into a traditional IRA, can this be done without penalty?
Yes, you can transfer your SIMPLE IRA to a Traditional IRA without if two years have passed since the time you opened it. Unlike other employer plans, after the two-year period, you can roll
over the money from the SIMPLE IRA to a traditional IRA regardless of
whether you're still working for the employer or not, your age or any
other factor. The rollover is not taxable, but since both your contributions and employer's matching contributions were made pre-tax you cannot reduce your income by the amount you transfer.
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I currently have a Simple Ira through my current employer, and I am looking to convert some of that into a traditional IRA, can this be done without penalty?
Yes, you can transfer your SIMPLE IRA to a Traditional IRA without if two years have passed since the time you opened it. Unlike other employer plans, after the two-year period, you can roll
over the money from the SIMPLE IRA to a traditional IRA regardless of
whether you're still working for the employer or not, your age or any
other factor. The rollover is not taxable, but since both your contributions and employer's matching contributions were made pre-tax you cannot reduce your income by the amount you transfer.
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