Guest KeithinClev Posted January 21, 2004 Share Posted January 21, 2004 We have a client that terminated a SIMPLE IRA Dec. 31, and started up a 401(k) Jan. 1. The SIMPLE IRA was started with the employer 4 years ago. There are a couple of people that have started deferring into the SIMPLE the last couple of years. Does the 25% penalty apply to each individual account when they first opened their account or does it go back to when the company adopted the SIMPLE IRA. They are looking to roll money into their new 401(k) Plan. Thank you Link to comment Share on other sites More sharing options...
Michael Devault Posted January 21, 2004 Share Posted January 21, 2004 According to Publication 590, the 25% penalty applies to early distributions during the 2 year period following the date on which the person first participated in the SIMPLE plan. Hope this is of some help to you. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now