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.

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Posted by 4LSU2

Member since Dec 2009

37306 posts

Posted on 1/8/14 at 6:45 am to 4LSU2

Thanks for the input guys. I will probably just do that.

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Posted by TigerRob20

Baton Rouge

Member since Nov 2008

3731 posts

Posted on 1/8/14 at 7:39 am to 4LSU2

Doesn't sound like you can do much.

LINK

If I were you, I'd talk to my CPA about this. The easiest thing to do, and maybe the most beneficial for the future would be to cash it out and transfer to a 529 plan.

This post was edited on 1/8/14 at 7:40 am

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Posted by 4LSU2

Member since Dec 2009

37306 posts

Posted on 1/8/14 at 8:45 am to TigerRob20

That sucks to hear. I appreciate the link and help nonetheless.

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Posted by Specktricity

Lafayette

Member since May 2011

1232 posts

Posted 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

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Posted by Broke