What Should I do with my Simple IRA after I Retire?
Jason Stolz CLTC, CRPC
Reaching retirement is a major milestone—and if you have a SIMPLE IRA from years of working in a small business, medical office, family business, or professional practice, you may now be wondering: What should I do with my SIMPLE IRA after I retire?
Because SIMPLE IRAs are built for small business employees, they often come with limited investment choices, higher-cost funds, and fewer retirement features compared to what retirees want later in life. Once you retire, you finally gain full control over what happens next—and the decision you make impacts your taxes, safety, income, and long-term financial security.
At Diversified Insurance Brokers, we help retirees evaluate rollover options, compare guaranteed income strategies, and decide whether to keep a SIMPLE IRA, roll it into an IRA, or convert it into a protected annuity for lifetime income. This comprehensive guide walks you through each option with clear explanations, safety considerations, and next steps.
Retiring With a SIMPLE IRA?
Compare rollover options, guaranteed income strategies, and market-protected annuities.
View Fixed Annuity Rates | View Bonus Annuity RatesUnderstanding How a SIMPLE IRA Works at Retirement
A SIMPLE IRA is a tax-deferred account funded by both employee and employer contributions. When you retire, several options become available. Before choosing your path, it’s helpful to revisit the basics:
You can review the full structure here: How Does a SIMPLE IRA Work?
Once you retire, your SIMPLE IRA can be structured in a variety of ways depending on your goals. Common choices include:
- Leaving the SIMPLE IRA where it is
- Rolling it into a Traditional IRA
- Rolling it into a Roth IRA (taxable conversion)
- Rolling it into a guaranteed annuity for lifetime income
- Taking withdrawals (taxable)
Each choice has different tax, income, and risk implications, so let’s explore them in more detail.
Option 1: Leaving Your SIMPLE IRA Where It Is
Some retirees choose to leave their SIMPLE IRA in the existing plan. This may make sense if you prefer your current investment setup or if your fees are lower than average. However, this option often comes with limitations:
- Limited investment menu
- Higher-fee mutual funds
- No guaranteed income options
- No market downside protection
This is why many retirees evaluate rollover options right away.
Option 2: Rolling Your SIMPLE IRA Into a Traditional IRA
A Traditional IRA rollover is one of the most common decisions after retirement because it provides greater control, wider investment options, and potentially lower fees. A direct rollover is tax-free and keeps your money growing tax-deferred.
Learn more about IRA structure here: How Does an IRA Work?
Reasons retirees choose an IRA rollover include:
- More control over investments
- Ability to consolidate accounts
- More flexible withdrawal options
- Better long-term planning opportunities
Option 3: Rolling Your SIMPLE IRA Into a Guaranteed Annuity
This is one of the most powerful and secure options for retirees who want predictable lifetime income or protection from market losses. Rolling your SIMPLE IRA into an annuity allows you to convert part of your retirement savings into a personal pension.
See the rollover process here: How to Transfer a SIMPLE IRA to an Annuity
Advantages of a SIMPLE IRA-to-Annuity Rollover
- Guaranteed lifetime income that you cannot outlive
- Principal protection from market downturns
- Tax-deferred growth continues uninterrupted
- Better survivor benefits than many SIMPLE IRA structures
- Optional bonuses for income or accumulation
- Stronger legacy options
With over 75 carriers available, we help retirees compare annuity rates, bonus structures, income riders, and liquidity features.
How Much Guaranteed Income Could Your SIMPLE IRA Provide?
Use the calculator below to estimate lifetime income using your rollover amount, retirement age, and payout strategy.
Coordinating Your SIMPLE IRA With the Rest of Your Retirement Plan
Your SIMPLE IRA doesn’t exist in a vacuum. A smart plan considers Social Security, 401k assets, brokerage accounts, taxable investments, and pensions. Many retirees use annuity income as their “baseline” to cover essential expenses, while other assets are used for flexibility, growth, or legacy goals.
How Diversified Insurance Brokers Helps Retirees
As a nationwide independent agency, Diversified Insurance Brokers compares SIMPLE IRA rollover options across 75+ insurers. We evaluate:
- Guaranteed income rates
- Bonus and accumulation structures
- Principal protection features
- Liquidity and emergency-access provisions
- Legacy and spouse continuation options
We help retirees build a secure, predictable income plan that protects their assets while maximizing flexibility.
Request a SIMPLE IRA Review
See your rollover options, guaranteed income projections, and tax-efficient strategies.
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FAQs: What Should I Do With My SIMPLE IRA After I Retire?
Can I leave my SIMPLE IRA where it is after retirement?
Yes, but this keeps you limited to the plan’s investment options and typically offers no guaranteed income or market protection. Most retirees choose a rollover for greater control.
Is rolling my SIMPLE IRA into an IRA tax-free?
Yes. A direct rollover is tax-free and maintains the account’s tax-advantaged status. Many retirees use this option for more investment flexibility.
Why roll a SIMPLE IRA into an annuity?
An annuity rollover can protect your principal from market losses and provide guaranteed lifetime income, similar to a pension.
Is rolling my SIMPLE IRA into an annuity taxable?
No. When done as a direct transfer, a SIMPLE IRA-to-annuity rollover is not taxable.
What happens with RMDs?
Once you reach the IRS RMD age, you must take annual withdrawals. Rolling to an IRA or annuity does not eliminate RMDs but may help with planning.
Can I convert my SIMPLE IRA to a Roth IRA?
Yes, but it is a taxable event. Some retirees convert portions over time to reduce taxes.
Can my SIMPLE IRA provide guaranteed income?
The SIMPLE IRA itself cannot, but rolling it into an income annuity can provide a lifetime income stream.
How do I decide which option is best?
It depends on your income needs, risk tolerance, health, and retirement goals. A personalized analysis compares keeping the account, rolling it over, or converting it into guaranteed income.
About the Author:
Jason Stolz, CLTC, CRPC, is a senior insurance and retirement professional with more than two decades of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient.
