Can I roll over my SIMPLE IRA?

What is a SIMPLE IRA?

A SIMPLE IRA is an employer-sponsored retirement plan designed for small businesses. It operates similarly to a Traditional IRA but carries higher contribution limits, up to $17,000 for 2026, plus a catch-up of $4,000 for participants age 50 or older. Employers are required to contribute as well, either by matching employee deferrals up to 3% of compensation or making a flat 2% nonelective contribution for all eligible employees.

Because it's employer-based, your relationship to the plan matters when it comes to self-direction.

Are you the employer or the employee?

If you own or operate the business sponsoring the SIMPLE IRA, you generally have more flexibility in how the plan is administered. You may be able to designate IRA Resources as your SIMPLE IRA custodian from the outset, or set up a parallel self-directed Traditional IRA and move funds over time.

If you participate in a SIMPLE IRA sponsored by someone else's business, your options depend on how that plan is structured. Some SIMPLE IRA plans designate a single financial institution for all participants. Others allow each employee to choose their own custodian. If the plan allows individual custodian selection, contributions may be directed to IRA Resources. If it doesn't, you'll work with what the plan allows until you're ready to move funds out.

The two-year rule

SIMPLE IRA funds must remain in a SIMPLE IRA for at least two years from the date of your first contribution before they can be rolled to a non-SIMPLE account. After that window, you have the option to roll funds to a Traditional IRA, or to any other eligible plan type, just as you would with any other pre-tax account. Within the first two years, the only permitted destination for a rollover is another SIMPLE IRA.

This is a straightforward rule; just confirm your plan start date before initiating any move outside of a SIMPLE-to-SIMPLE transfer.

Option 1: Move to a new SIMPLE IRA (any stage)

A SIMPLE-to-SIMPLE transfer is permitted at any point, regardless of how long your current plan has been active. If you want to begin self-directing immediately, or if you're within the first two years, rolling to a new SIMPLE IRA at IRA Resources is the right starting point. Your contribution eligibility continues uninterrupted, and you gain access to alternative assets from day one.

Option 2: Transfer to a Traditional IRA (after two years)

Once the two-year requirement is met, your SIMPLE IRA balance can transfer to a Traditional IRA at IRA Resources, where it funds a checkbook IRA trust or LLC. This is the typical path when closing an old SIMPLE plan, or if you want to combine SIMPLE funds with other tax-deferred funding sources. Standard transfer rules apply at this stage; there are no SIMPLE-specific restrictions remaining.

Option 3: Dual-track — keep your SIMPLE, add a Traditional IRA

This approach works well when you're an employee in someone else's plan, when you have a large active SIMPLE IRA and want to self-direct only a portion, or when contributions are ongoing and you don't want to interrupt them.

You keep your existing SIMPLE IRA active for contributions. In parallel, you open a self-directed Traditional IRA at IRA Resources. Once the account has cleared the two-year window, you can transfer any portion of the balance to the Traditional IRA at any time. The two plans run side by side; one captures new contributions, the other puts a portion of your capital to work in alternative assets.