Old Simple IRA (previous employer) and current single-user SEP IRA re: Vanguard to Ascensus. Correct understanding?

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mud
Posts: 85
Joined: Mon Feb 21, 2011 8:20 pm

Old Simple IRA (previous employer) and current single-user SEP IRA re: Vanguard to Ascensus. Correct understanding?

Post by mud »

Per Vanguard's announcement earlier this year that "Vanguard has reached an agreement to transition SIMPLE IRA, multi-participant SEP-IRA, and Individual 401(k) products to Ascensus...", my assumption is that I need to make one change in my portfolio.

Two questions - just want some clarity before the July 12, 2024 deadline:

1. Simple IRA - I have a Simple IRA at Vanguard from a previous employer plan. I've been gone from that job for 12 years. I assume I can just roll this over to a rollover IRA at Vanguard (or other provider if I wanted to) and that's all good? Any "gotchas" that I should be aware of, assuming a rollover to Vanguard?

2. Single-participant SEP IRA - I have a single participant SEP IRA with my current business. I'm assuming I can just continue with no changes as the announcement specifies "multi-participant SEP-IRA". Correct?
Alan S.
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Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: Old Simple IRA (previous employer) and current single-user SEP IRA re: Vanguard to Ascensus. Correct understanding?

Post by Alan S. »

mud wrote: Fri Jun 07, 2024 9:10 am Per Vanguard's announcement earlier this year that "Vanguard has reached an agreement to transition SIMPLE IRA, multi-participant SEP-IRA, and Individual 401(k) products to Ascensus...", my assumption is that I need to make one change in my portfolio.

Two questions - just want some clarity before the July 12, 2024 deadline:

1. Simple IRA - I have a Simple IRA at Vanguard from a previous employer plan. I've been gone from that job for 12 years. I assume I can just roll this over to a rollover IRA at Vanguard (or other provider if I wanted to) and that's all good? Any "gotchas" that I should be aware of, assuming a rollover to Vanguard?

2. Single-participant SEP IRA - I have a single participant SEP IRA with my current business. I'm assuming I can just continue with no changes as the announcement specifies "multi-participant SEP-IRA". Correct?
1) Yes, but a direct transfer is more efficient because it does not use up your one rollover and you will not have to report it.

2) VG is retaining one participant SEP IRAs..........for now. Not sure why the kept them, as they will have to deal with new Roth SEP rules very soon.
Topic Author
mud
Posts: 85
Joined: Mon Feb 21, 2011 8:20 pm

Re: Old Simple IRA (previous employer) and current single-user SEP IRA re: Vanguard to Ascensus. Correct understanding?

Post by mud »

Alan S. wrote: Fri Jun 07, 2024 5:25 pm
mud wrote: Fri Jun 07, 2024 9:10 am Per Vanguard's announcement earlier this year that "Vanguard has reached an agreement to transition SIMPLE IRA, multi-participant SEP-IRA, and Individual 401(k) products to Ascensus...", my assumption is that I need to make one change in my portfolio.

Two questions - just want some clarity before the July 12, 2024 deadline:

1. Simple IRA - I have a Simple IRA at Vanguard from a previous employer plan. I've been gone from that job for 12 years. I assume I can just roll this over to a rollover IRA at Vanguard (or other provider if I wanted to) and that's all good? Any "gotchas" that I should be aware of, assuming a rollover to Vanguard?
1) Yes, but a direct transfer is more efficient because it does not use up your one rollover and you will not have to report it.
Thanks....I'm not familiar with a rollover limit. Do you have more info on this? Are you saying it would be easiest to just let Ascensus have it, as it would stay a SIMPLE IRA? I'm hoping to keep as much as I can at Vanguard. I've got a couple of things at Fidelity, so would be fine putting things there as well.
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retiredjg
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Re: Old Simple IRA (previous employer) and current single-user SEP IRA re: Vanguard to Ascensus. Correct understanding?

Post by retiredjg »

The money in your SIMPLE IRA can be moved into a traditional IRA and stay at Vanguard. The movement of the money is commonly called a "rollover", but the IRS uses different terminology for how the money moves.

If the money is moved by the old trustee to the new trustee, this is called a "transfer". This is not limited to once a year.

If they give the money to you and you give it to the new trustee within 60 days, it is called an indirect rollover or 60 day rollover. This is what you can only do one time in 365 days.

Just call them and transfer the money to a tiRA at Vanguard or Fidelity and forget about Ascensus.
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