SIMPLE IRA to 401(k)

[Guest Lesley Sifers]

Can a SIMPLE IRA be rolled into a 401(k) account? Here is the situation: Current participant in a 401(k) plan has a SIMPLE IRA account with a major brokerage from a former employer's plan. Participant has been told by the brokerage that he cannot role the SIMPLE IRA directly to the 401(k) but that he could roll it to a Rollover IRA - if it has been two years since the last contribution - and then roll it into the 401(k) from the rollover IRA. This seems like a huge rigamarole for someone who has terminated employment with the employer who sponsored the SIMPLE IRA plan. If it makes any difference, he has always had all of the money in a money market account. Someone please help me understand what the rules really are!

[R. Butler]

Assuming the 401(k) Plan document allows for rollovers from a SIMPLE-IRA and assuming the SIMPLE-IRA has been in existence for longer than two years than the participant should be able to rollover into the Plan.