Personal Investments • SIMPLE IRA at Vanguard - Do I move to E*Trade or Ascensus

Here's my situation: Day job has a SIMPLE IRA at Vanguard since 2011. Currently 3% match and I rollout the account every December to keep a zero balance when the new year starts [account has been open > 2 years]. I have a I401K at Etrade for side job. I do a mega back door roth in the i401K in that account.

I called E*Trade about opening up SIMPLE IRA there as I like their interface. However, their opinion was that the SIMPLE IRA would be a new account and I would have a penalty if I wanted to roll out funds within 2 years of opening the account.

Ascensus won't give me an opinion on the question if I can rollout money at the end of 2024 without penalty.

I could choose to leave the 3% match on the table and not contribute any more to the SIMPLE IRA. I would just do the MBDR on the 401k and it wouldn't change my long term plan with regards to retirement [I'm early 40s not trying to retire early].

I could also let my Vanguard SIMPLE IRA change custodians to Ascensus and risk either pay a penalty or have prorate calculations. I don't know if a change in custodians will trigger a 2 year waiting period.

It is just frustrating to me that since Vanguard made this decision I might have to pay a penalty.

Any advice?

Statistics: Posted by KansasDoc — Wed Apr 24, 2024 7:00 am — Replies 0 — Views 29

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