Any Broker Supporting Stranded Simple IRAs?

[W]

Is there any broker that will support opening a "stranded" Simple IRA? Our
company processes payroll through a vendor who has the Simple IRA. They
only support mutual funds and I want to control the investments to
individual stocks and bonds. A company cannot have two Simple IRA
administrators, so supporting a transfer of funds from one Simple IRA to
another Simple IRA in this case requires me to setup a "stranded" Simple IRA
account (one which is not actively administered for the company).
Apparently many brokers refuse to set up stranded Simple IRAs. Does anyone
know of a broker who does this? Or is there a more straightforward way to
take control of the investments in a Simple IRA (maybe transferring to a
different type of IRA?).

--
W

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[Alan]

On 12/17/09 3:54 PM, W wrote:
> Is there any broker that will support opening a "stranded" Simple IRA? Our
> company processes payroll through a vendor who has the Simple IRA. They
> only support mutual funds and I want to control the investments to
> individual stocks and bonds. A company cannot have two Simple IRA
> administrators, so supporting a transfer of funds from one Simple IRA to
> another Simple IRA in this case requires me to setup a "stranded" Simple IRA
> account (one which is not actively administered for the company).
> Apparently many brokers refuse to set up stranded Simple IRAs. Does anyone
> know of a broker who does this? Or is there a more straightforward way to
> take control of the investments in a Simple IRA (maybe transferring to a
> different type of IRA?).
>

As far as I can tell, a SIMPLE IRA being an employer plan
requires an employer to establish the plan for the employees.
There are unlimited rollovers of contributions & earnings allowed
from one Simple IRA to another SIMPLE IRA. I don't see how an
individual who is not self-employed can establish a SIMPLE IRA.
As such, I don't see how you can accomplish what you want.

You can rollover the balance to an IRA, but only after two years
of participation in the Simple IRA. You just may have to wait for
the two year period to elapse before you can self-manage the
investments.