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Simple IRA question

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Roadgeek395
Regular Contributor

Simple IRA question

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!

Message 1 of 7
6 REPLIES 6
CreditInspired
Super Contributor

Re: Simple IRA question

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. 


|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macys $24.2K || NFCU CLOC $15K || NFCU Platinum $15K || CitiCostco $12.7K || Chase FU $12.7K || Apple Card $7K || BOA CashRewards $6K
Message 2 of 7
Horseshoez
Senior Contributor

Re: Simple IRA question

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.

Chapter 13:

  • Burned: AMEX, Chase, Citi, Wells Fargo, and South County Bank (now Bank of Southern California)
  • Filed: 26-Feb-2015
  • MoC: 01-Mar-2015
  • 1st Payment (posted): 23-Mar-2015
  • Last Payment (posted): 07-Feb-2020
  • Discharged: 04-Mar-2020
  • Closed: 23-Jun-2020

 

I categorically refuse to do AZEO!

In the proverbial sock drawer:
Message 3 of 7
Roadgeek395
Regular Contributor

Re: Simple IRA question

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.


 

Message 4 of 7
Anonymous
Not applicable

Re: Simple IRA question

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)

Message 5 of 7
Horseshoez
Senior Contributor

Re: Simple IRA question


@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.

Chapter 13:

  • Burned: AMEX, Chase, Citi, Wells Fargo, and South County Bank (now Bank of Southern California)
  • Filed: 26-Feb-2015
  • MoC: 01-Mar-2015
  • 1st Payment (posted): 23-Mar-2015
  • Last Payment (posted): 07-Feb-2020
  • Discharged: 04-Mar-2020
  • Closed: 23-Jun-2020

 

I categorically refuse to do AZEO!

In the proverbial sock drawer:
Message 6 of 7
CreditInspired
Super Contributor

Re: Simple IRA question


@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. 


|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macys $24.2K || NFCU CLOC $15K || NFCU Platinum $15K || CitiCostco $12.7K || Chase FU $12.7K || Apple Card $7K || BOA CashRewards $6K
Message 7 of 7
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