Permalink Submitted by David Mertz on Fri, 2018-05-11 17:36
The law was written this way for the protection of the participant’s interests by prohibiting the participant from moving funds from an IRA that is subject to only a 10% early-distribution penalty to a SIMPLE IRA that is subject to a 25% early-distribution penalty.
Permalink Submitted by William Tuttle on Fri, 2018-05-11 18:00
Asking the question why when it comes to tax law, is usually a non-productive exercise. If I had to guess, I would think it was to be consistent with all other retirement plans.
In all other cases, rollover contributions can always be rolled back out without penalty.
In a SIMPLE IRA < two years after first contribution, it would not be possible without additional revisions.
Permalink Submitted by David Mertz on Fri, 2018-05-11 17:36
The law was written this way for the protection of the participant’s interests by prohibiting the participant from moving funds from an IRA that is subject to only a 10% early-distribution penalty to a SIMPLE IRA that is subject to a 25% early-distribution penalty.
Permalink Submitted by William Tuttle on Fri, 2018-05-11 18:00