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Posted

Are pre-approved plan document vendors generally providing sample sponsor amendments to permit rollovers from a qualified plan to a SIMPLE IRA (i.e. PATH  Act of 2015)?

Posted

Off the cuff, I'm not sure an amendment would be necessary if the Plan's definition of "Eligible Retirement Plan" is already written in a manner to incorporate SIMPLE IRAs; usually by a Code reference instead of naming each account.  Isn't a SIMPLE IRA still considered an Individual Retirement Account under Section 408(a)?

Good Luck!

CPC, QPA, QKA, TGPC, ERPA

Posted

Well, I'm with DGEM (e.g. ASCi).  They prepared the amendment to their BPD to permit rollovers to SIMPLE IRAs.  I just executed mine (as Prototype Sponsor) and would encourage others to do the same.  

CPC, QPA, QKA, TGPC, ERPA

Posted

Well I learned something today (I guess I can go home now).

Like ETA, I thought a SIMPLE IRA was really just an IRA and it was implicit that you could roll into one, but because of the two year holding period and higher penalty for taking money out, they are indeed different and rollovers in were not permitted.  The PATH* Act of 2015 does permit such rollovers, but only after the two year period has passed.  Can't say I'd heard of it, or maybe just forgot.

*Protecting Americans from Tax Hikes (eyes rolling)

Ed Snyder

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