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Switching Simple IRA Companies


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I am president of a small corporation(only 3 employees) and am wanting to switch plan providers. I am wanting to go with a company that offers low cost index funds for us instead of just only high cost mutual funds. We are in our 60 day window now. Are there any penalties that we should consider concerning this change? It would be changing to a whole different company .We are hoping there wouldn't be any rollover fees for transferred. Any help would be appreciated.

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You should be fine as there won't be any unforeseen penalties from the IRS. Each investment product, however, may carry its own surrender charges; so you'd want to be mindful of that. During the transfer, you'd want to ensure the new custodian adopts the original contribution date for purposes of the two year restriction.

Also be mindful that the actual transfer of accounts from one company to another is an individual decision for each participant. You may only direct the account for new deposits in the upcoming year.

Sorry for the short write up, but I'm actually sitting at a bar keying into my phone. So, I got a little bored :-)

Good Luck!

CPC, QPA, QKA, TGPC, ERPA

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