Gary Lesser Posted December 26, 1998 Report Share Posted December 26, 1998 In response to numerous personal mail messages.... A SEP is not a "successor" defined contribution plan for the purposes of Code Section 401(k)(10)(A)(i). The purpose of that section is to prevent participants from gaining premature access to their funds. Requiring transfer into a SEP would accomplish nothing. This position is supported by the regulations under that Code Section. The same rational would apply to a SIMPLE IRA. Furthermore, a SIMPLE IRA plan may not accept rollovers from a qualified plan. In the case of a SIMPLE, the only contributions that are permitted are contributions (i) under a qualified salary reduction arrangement, and (ii)rollovers or transfers from other SIMPLE IRAs (UNLESS subject to the two year restriction, see IRC 408(d)(3)(G)). Link to comment Share on other sites More sharing options...
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