Can an amount be transferred from a SIMPLE IRA to another IRA in a tax-free trustee-to-trustee transfer?
During the 2-year period (described in Q&A 2 under the Distribution section above), an amount in a SIMPLE IRA may be transferred to another SIMPLE IRA in a tax-free trustee-to-trustee transfer. If, during this 2-year period, an amount is paid from a SIMPLE IRA directly to the trustee of an IRA that is not a SIMPLE IRA, the payment is neither a tax-free trustee-to-trustee transfer nor a rollover contribution; the payment is a distribution from the SIMPLE IRA and a contribution to the other IRA that does not qualify as a rollover contribution. After the expiration of the 2-year period, an amount in a SIMPLE IRA may be transferred in a tax-free trustee-to-trustee transfer to an IRA that is not a SIMPLE IRA.
