Common use of Simple Iras Clause in Contracts

Simple Iras. Although a SIMPLE IRA is a type of Traditional IRA, special rules apply to rollovers to and from SIMPLE IRAs. In general, you may not roll over amounts from any other IRAs or eligible employer plans into a SIMPLE IRA and you may not roll over your SIMPLE IRA into another Traditional IRA or qualified employer- sponsored retirement plan during the two-year period beginning on the first day contributions are made by your employer to your SIMPLE IRA. Refer to your SIMPLE IRA plan information for rules regarding rollovers to and from SIMPLE IRAs. You may roll over all or part of an “eligible rollover distribution,” as described in the Code, from an eligible employer plan (other than a designated ▇▇▇▇ account), to a Traditional IRA (or a Rollover IRA). Distributions of after-tax contributions also may be eligible for rollover to Traditional IRAs. If you roll over after-tax contributions, you must keep track of those amounts and report them to the IRS as required by IRS rules. The administrator of the eligible employer plan must give you an explanation of your rollover options and the tax rules that affect your distribution. The rollover may be accomplished by a “direct rollover” or an “indirect rollover.” In a direct rollover, the plan issues the distribution directly to the custodian or trustee of the Traditional IRA. In an indirect rollover, the plan pays the distribution to you. You must then roll over the distribution to your Traditional IRA within 60 days. A rollover of assets from an eligible employer plan also may be accomplished by selling the assets distributed and rolling over the sale proceeds (within 60 days of the distribution date). If you roll over the entire sales proceeds, you will not include any gains or losses in your gross income. If you were born on or before January 1, 1936, keeping any rollover contribution that you make from your employer’s plan to a Rollover IRA, separate from all other contributions, may allow you to preserve special tax treatment (such as 10-year averaging) in the event that you roll that amount to another employer’s plan and later take a distribution. This type of Rollover IRA, used as a holding account for a rollover to another employer’s plan, is referred to as a “conduit” IRA. Even if you were not born on or before January 1, 1936, a separate Rollover IRA may help you to keep track of different money sources (such as deductible and nondeductible contributions). Always check with your employer or plan administrator if you want to roll money from an IRA to an employer-sponsored plan. Upon the death of a participant in an eligible employer plan, the surviving spouse beneficiary is permitted to roll over an eligible rollover distribution from the employer plan into his or her own IRA. A non-spouse beneficiary may make a direct transfer of an eligible rollover distribution from an eligible employer plan to an Inherited IRA. The Inherited IRA will be subject to the same required minimum distribution rules that would apply to the non-spouse beneficiary of an IRA. A non- spouse beneficiary may not later roll over an Inherited IRA to his or her own IRA or to another eligible employer plan. You may roll over all or part of an eligible rollover distribution from a designated ▇▇▇▇ account in an eligible 401(k) plan, 403(b) plan or governmental 457(b) plan to a ▇▇▇▇ ▇▇▇ (or a ▇▇▇▇ Rollover IRA). If you roll over amounts from a designated ▇▇▇▇ account in an eligible plan to a ▇▇▇▇ ▇▇▇, you are responsible for keeping track of the basis in the ▇▇▇▇