SIMPLE IRA transfer to vanguard

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ray333
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Joined: Thu Mar 09, 2017 8:47 am

SIMPLE IRA transfer to vanguard

Postby ray333 » Mon Mar 20, 2017 8:42 pm

considering liquidating my American funds simple and rolling into my Vanguard Roth [I know there will be a tax hit, but its only 6700 in there and I will be in a higher bracket in 2018].

Am I missing something? I do not see SIMPLE IRA on the pull down menu to initiate the transfer ... Would I select "Rollover IRA"? Apologies for what I'm sure will end up being a dumb question. I guess I could just liquidate the funds and have them mail me a check ... how would I put this into my Roth if I already contributed though?

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pennstater2005
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Re: SIMPLE IRA transfer to vanguard

Postby pennstater2005 » Mon Mar 20, 2017 8:57 pm

Yes. You can choose the rollover IRA. And then those assets will be transferred in kind. No selling or buying is involved.

This is what I saw when I initiated my wife's simple IRA transfers and I chose rollover IRA.

Image
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Spirit Rider
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Re: SIMPLE IRA transfer to vanguard

Postby Spirit Rider » Mon Mar 20, 2017 9:13 pm

Make sure it has been two years since the first contribution was deposited. Otherwise, there will be a 25% penalty, the distribution is irreversible and because they were no longer retirement funds, any amount of the rollover beyond an available Roth contribution is an excess contribution and must be removed.

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pennstater2005
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Re: SIMPLE IRA transfer to vanguard

Postby pennstater2005 » Mon Mar 20, 2017 9:18 pm

Spirit Rider is referring to this IRS rule:

https://www.irs.gov/retirement-plans/si ... tributions

Read toward the bottom of the page.
“Life is short, Break the Rules, Forgive quickly, Kiss slowly, Love truly, Laugh uncontrollably, And never regret anything that made you smile" - Unknown

ray333
Posts: 117
Joined: Thu Mar 09, 2017 8:47 am

Re: SIMPLE IRA transfer to vanguard

Postby ray333 » Mon Mar 20, 2017 9:24 pm

$6700 total. well past the 2 year threshold (almost a decade old) first job out of college pretty much forgot about the account - now obviously trying to get all my investments under the vanguard umbrella.

If I understand correctly, I can only roll up to the 5,500 limit? (Recently rolled a Roth over to Vanguard/made 2017 contribution)

Thank you for the help, much appreciated

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pennstater2005
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Joined: Wed Apr 11, 2012 8:50 pm

Re: SIMPLE IRA transfer to vanguard

Postby pennstater2005 » Mon Mar 20, 2017 9:35 pm

ray333 wrote:$6700 total. well past the 2 year threshold (almost a decade old) first job out of college pretty much forgot about the account - now obviously trying to get all my investments under the vanguard umbrella.

If I understand correctly, I can only roll up to the 5,500 limit? (Recently rolled a Roth over to Vanguard/made 2017 contribution)

Thank you for the help, much appreciated


Rollovers have no impact on your annual contribution limits. You can rollover any amount and it does not affect the $5500 ceiling. A nice link below regarding Simple IRA to Roth IRA conversions.

http://www.investopedia.com/ask/answers ... th-ira.asp
“Life is short, Break the Rules, Forgive quickly, Kiss slowly, Love truly, Laugh uncontrollably, And never regret anything that made you smile" - Unknown


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