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Direct rollover from pension plan into SIMPLE IRA


Guest ERISA_kid
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Guest ERISA_kid

I have a SIMPLE IRA accountholder who received a direct rollover from his employer's pension plan into his SIMPLE IRA. I haven't been able to find any guidance on how to correct non-SIMPLE IRA monies in a SIMPLE IRA. Should this be treated as an excess contribution? Should the SIMPLE IRA plan sponsor go through EPCRS? Any insight would be greatly appreciated. Thanks.

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My inclintion would be to speak with the SIMPLE-IRA trustee and see how they would like the correction made. Hopefully, the client also has an IRA with that institution. I would think that it is the employer/plan that has a problem (although it may have been caused by the participant's misdirection).

The amount rolled over to the SIMPLE-IRA from a nonSIMPLE IRA is an excess contribution. It would be better to have this fixed administratively, if possible.

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