Conversion of SIMPLE IRA balance to a Roth IRA

[Guest neilcap]

I have had a SIMPLE IRA for 3+ years and want to (a) convert some or all of the current balance to a Roth IRA and (B) continue making annual contributions to my SIMPLE IRA.

Can I do both? Are there particular issues that I should be aware of? Thanks.

Neilcap

[Appleby]

No issue...

Given that your SIMPLE IRA meets the two-year requirement, you may convert the balance to a Roth IRA.

The SIMPLE account can continue to receive SIMPLE IRA contributions

[Guest Lugeguy]

Converting tax deferred SIMPLE IRA monies to a Roth will cause you to be subject to ordinary income tax due in the year of the conversion. If you have plenty of time before retirement it may be a good idea. If you are close to retirement I would seek some professional financial advice.