Is there any benefit in moving a Simple IRA to a Traditional IRA on the same platform
We have a client with a Simple IRA who is retiring and wants to move to a Traditional IRA. All fees and investment options are the same on both platforms. Is there any benefit in moving to a Traditional that I am missing. He is past two years and penalties on the Simple.
Permalink Submitted by Alan - IRA critic on Mon, 2020-10-19 20:29
If retired, client can no longer contribute to the SIMPLE IRA, but he could if he opens a TIRA and either he or spouse will have earned income from which to make a TIRA contribution or spousal contribution. The RMD rules apply equally to a SIMPLE or TIRA account, as does taxation of distributions. Most people would prefer the direct transfer to the TIRA once they will not be contributing to the SIMPLE IRA any longer, and of course most SIMPLE IRA fees are comparatively high when contrasted to TIRA or Roth IRA fees that are otherwise available. Maybe not in this case?