WealthRabbit Support

Can I make Roth contributions to my WealthRabbit SIMPLE IRA?

Yes. Under the Secure 2.0 Act, employers may choose to add a SIMPLE Roth IRA option to their SIMPLE IRA plan. If your employer elects to offer this feature, you can make Roth salary deferral contributions to your SIMPLE IRA through WealthRabbit.

SIMPLE Roth IRA contributions are made with after-tax dollars, meaning they are included in your taxable income for the year they are contributed. Because the taxes are paid upfront, qualified withdrawals in retirement are generally tax-free, provided IRS requirements are met. These requirements typically include reaching age 59½ and satisfying the Roth five-year rule, or qualifying for an approved exception.

It is important to note that Roth contributions do not change the fact that this is still a SIMPLE IRA plan. Certain SIMPLE IRA rules, such as early withdrawal penalties during the first two years of participation, still apply.