Need Advise on rolling simple ira retirement plan into 457 plan

[Brandon Bolinger]

I have a simple ira from previous employer that I am considering rolling into my 457 plan. I have been considering it for awhile but can't find the correct answers. On one of the Bigger Pockets Money podcasts a few years ago Mindy Jensen stated that anyone that has a 457 Plan would be smart to roll other accounts into it due to having access to the money once you separate from that employer without penalties. I don't have any desire to start pulling money out of the plan but I like the thought of having access to it with out penalties if I were to separate from my employer. (I'm planning on my real estate to be my primary retirement income.) Reading through the IRS website it says I can roll my simple ira into my 457 but it says it must be tracked in a separate account. What I can't get clarification on is if the 10% penalty remains with that money. If the 10% penalty stays with that money then I don't see the benefit of rolling it into my 457 like Mindy was saying. The guy that runs my 457 plan said from what he found the 10% penalty stays with the money and he doesn't see a benefit from rolling it in. Can anyone help me clarify this? Also would you have any other recommendations of better strategies. My thought is to be able to use this money at some point to help fund my Real Estate investing. I also like the idea of doing a self directed IRA but haven't educated myself enough to consider it. Thanks