topic Simple IRA question in Personal Finance

Simple IRA question

Roadgeek395 — Sun, 19 Sep 2021 22:31:36 GMT

Hey everyone,

I have a simple IRA with a previous employer. I ended my employment with that company in mid July. The main questions I have now is what happens to the simple IRA? What are my best options?

The simple IRA is currently with Primerica.

Thanks in advance!

Re: Simple IRA question

CreditInspired — Mon, 20 Sep 2021 10:20:31 GMT

Your employer should have given you paperwork. Did you "not" receive this during your exit interview? If no, call and ask to speak to the Administrator of the plan--most likely, the head of HR.

Depending on the specifics of the plan and your company's vesting options, you may be able to roll it over to an IRA of your choice, keep the IRA with your employer's plan, or ask for a distribution. However, if you do the latter, you will pay a 10% penalty if you're not at least age 59.5.

So first, talk to your former employer and/or look through your paperwork.

Re: Simple IRA question

Horseshoez — Mon, 20 Sep 2021 11:42:20 GMT

In cases like mine, the employer I was with when my Simple IRA was created no longer exists. I contacted the brokerage firm, Schwab, directly and arranged to have my Simple transferred to my personal IRA account.

Re: Simple IRA question

Roadgeek395 — Mon, 20 Sep 2021 12:25:23 GMT

I appreciate the advice. I did not receive any paperwork about the simple IRA when I left the company, my office manager told me I'd receive a letter in the mail from Primerica. It has been about two months and I haven't received any mail so I guess I will have to give them a call.

Re: Simple IRA question

Anonymous — Mon, 20 Sep 2021 17:49:58 GMT

It looks like the main difference with SIMPLE IRAs is the two year rule, detailed among other things here.

What Happens to My SIMPLE IRA If I Leave the Firm That Sponsored It? (investopedia.com)

Re: Simple IRA question

Horseshoez — Mon, 20 Sep 2021 19:31:28 GMT

@Anonymous wrote:
It looks like the main difference with SIMPLE IRAs is the two year rule, detailed among other things here.

What Happens to My SIMPLE IRA If I Leave the Firm That Sponsored It? (investopedia.com)

LOL, I opened mine in something like 2004 or 2005, so I didn't even know about the two year rule when I moved the money out of it this year.

Re: Simple IRA question

CreditInspired — Mon, 20 Sep 2021 21:56:42 GMT

@Anonymous wrote:
It looks like the main difference with SIMPLE IRAs is the two year rule, detailed among other things here.

What Happens to My SIMPLE IRA If I Leave the Firm That Sponsored It? (investopedia.com)

Thanks for providing this. Very informative and interesting read.