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I currently have a Roth IRA that I max out every year. My current company had Simple IRA and contributed 2% of my salary and I contributed 6000 a year. Now I am leaving the company and was hired by a new company with a 401K.
I plan to continue contributing the max to my Roth IRA and contributing to the 401K (bumping up my contribution).
So what are the options for my ex-employers SIMPLE IRA? Should I just leave it where it is or maybe roll it into a Rollover IRA ?
It sounds like the two best options would be to roll it over into a traditional IRA or roll it over into your new 401(k).
If there isn't much money in your SIMPLE IRA, it might make more sense to just roll it over into your 401(k) so you have fewer retirement accounts to keep track of. However, if you do have a significant amount of money in the SIMPLE IRA then you may wish to take advantage of the greater freedom in investment options that IRAs offer over most 401(k) plans.
Keep in mind the 2-year rule for SIMPLE IRAs. You will face tax penalties if you roll it and it hasn't yet been 2 years since the SIMPLE IRA was opened.
