Rollovers and Distributions SIMPLE IRA FAQs

Rollovers and Distributions for SIMPLE IRA plans

A Security Benefit SIMPLE IRA offers you turnkey sales support to reduce your administrative workload, while providing your small business clients an easy way to provide a retirement plan for their employees. Not only are SIMPLE IRAs, well simple, they are inexpensive and straightforward to set up.

No cost to establish
Minimal government reporting requirements
No annual non-discrimination testing
Employee salary deferral contributions may be made on a pre-tax or Roth (after-tax) basis, if permitted under plan terms
Minimal employer involvement

Below are some frequently asked questions. You can find more on SIMPLE IRA FAQs Overview, Establishing a SIMPLE IRA, and Contributing to a SIMPLE IRA. Visit our SIMPLE IRA page to learn about the Security Benefit SIMPLE IRA.

What plans can rollover into a SIMPLE IRA plan?

SEP IRA	Yes, after 2 years*
SIMPLE IRA	Yes, no 2-year restriction
Traditional IRA	Yes, after 2 years*
Roth IRA	Yes, after 2 years*
Existing 401(k)	Yes, after 2 years*
Roth 401(k)	Yes, after 2 years*
403(b) or 457(b)	Yes, after 2 years*

*As measured from the date of the first contribution to the account.

Do Required Minimum Distributions (RMDs) need to be taken from the SIMPLE IRA plan while still employed?

Yes.

Can a Roth SIMPLE IRA plan be rolled over to a Roth IRA?

Yes, after the SIMPLE IRA account is two years old as measured from the date of the first contribution to the account.

Can a pretax SIMPLE IRA plan be rolled over directly to a Roth IRA?

Yes, after the SIMPLE IRA account is two years old as measured from the date of the first contribution to the account. Note that taxes will be due.

Can a SIMPLE IRA plan allow in-plan Roth conversions from my pretax funds?

No.

Can an existing SIMPLE IRA plan be transferred to a new provider/recordkeeper?

Yes, a SIMPLE IRA plan can be transferred.

FINANCIAL PROFESSIONAL USE ONLY — NOT FOR USE WITH CONSUMERS

Security Benefit, its affiliates and subsidiaries, and their respective employees and representatives, do not provide tax, accounting, or legal advice. Any statements contained herein concerning taxes were not intended as and should not be construed as tax advice, nor should they be used for the purpose of avoiding federal, state, or local taxes and/or tax penalties. Please seek independent tax, accounting, or legal advice.

Services and securities are offered through Security Distributors, a subsidiary of Security Benefit Corporation (Security Benefit).

SB-10042-14 | 2023-12-05

SEP IRA

Yes, after 2 years*

SIMPLE IRA

Yes, no 2-year restriction

Traditional IRA

Yes, after 2 years*

Roth IRA

Yes, after 2 years*

Existing 401(k)

Yes, after 2 years*

Roth 401(k)

Yes, after 2 years*

403(b) or 457(b)

Yes, after 2 years*