Can You Still Contribute to a SIMPLE IRA From a Previous Job? 

Here’s What You Need to Know

We often hear this question:
“I have a SIMPLE IRA [from a previous employer], and I’d like to contribute to that account through my new company. How do I set that up?”

It’s a great question, and one that’s important to get right, because SIMPLE IRAs have unique rules that differ from traditional and Roth IRAs.

Can I Contribute to My Old SIMPLE IRA Through My New Employer?

The Short Answer: You Can’t

A SIMPLE IRA is an employer-sponsored retirement plan, not a personal IRA. That means:

• Contributions must come through your current employer via payroll.
• A current employer cannot contribute to a SIMPLE IRA associated with another employer’s plan.

Even though the account is still in your name, it’s tied to a specific plan document—set up by your previous employer. Your new company would need to have its own SIMPLE IRA plan in place in order to make contributions.

What Are Your Options?

If your current employer does not sponsor a SIMPLE IRA, you have a few alternatives:

1. Ask if your new company offers a different retirement plan

They may have a 401(k), 403(b), or another plan type you can participate in now.

2. Consider consolidating

Once two years have passed since your first contribution to the SIMPLE IRA, you may be eligible to roll those funds into a traditional IRA or your new employer’s retirement plan (if it allows roll-ins). This can make your retirement savings easier to manage.

Rolling over from a SIMPLE IRA to:
Another SIMPLE IRA	Yes, any time (but only one rollover in any 12-month period)
Roth IRA	Yes, after two years (must be included in income)
Traditional IRA	Yes, after two years (but only one rollover in any 12-month period)
SEP-IRA	Yes, after two years (but only one rollover in any 12-month period)
Governmental 457(b)	Yes, after two years (must have separate accounts)
Qualified plan2(pre-tax)	Yes, after two years
403(b) (pre-tax)	Yes, after two years
Designated Roth401(k), 403(b), 457(b)	No

Source: https://www.irs.gov/pub/irs-tege/rollover_chart.pdf 

3. Open a traditional or Roth IRA for new contributions

If you want to continue saving beyond your current employer’s offerings, you can always open an individual IRA and make contributions directly, depending on your income and eligibility.

SIMPLE IRAs are tied to the employer who set them up, so a new company cannot make contributions to that existing account. 

But that doesn’t mean you’re stuck—there are other ways to keep building your retirement savings.