I've got an idle simple IRA that I had with my existing company since 2010. We moved to a 401k at the start of 2011 and this IRA has been idle since then. I started with the company at the start of 2010 and could contribute into the IRA six months in.
Anyway... I got a statement today that said I have close to 5k in the account. I haven't contributed in three years, but still earned almost $800 in 2013.
What can I do with this IRA to start contributing again with the sole purpose of using the 5k there as a college fund for my 11 month old son? I would move another 2 grand or so from savings and the plan would be to contribute at least $150 per month into this fund. I want something I can pull money out of in 17 years when he is ready for college.
Specktricity LSU Fan Lafayette Member since May 2011 836 posts
re: Idle Simple IRA Suggestions(Posted by Specktricity on 1/17/14 at 11:43 am to 4LSU2)
I am in a similar situation, and it is my belief that you can rollover a simple IRA to a 401k as long as you have participated in the simple for 2 years. Now, in your situation I am not sure whether or not contributing for 2 years would be required to be considered participating in the plan. I would ask a CPA. LINK