SIMPLE IRA Plus
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Open
Set up a SIMPLE IRA Plus plan
Employer forms
Use these forms to set up a Simple IRA Plus plan, including a plan with Roth salary deferral contributions.
Complete the forms in the SIMPLE IRA Plus Plan Sponsor Guide.Employee forms
Use these forms to enroll eligible employees into the plan.
Complete the SIMPLE IRA Plus Employee Enrollment Guide and SIMPLE IRA Plus Employee Disclosures..png/_jcr_content/renditions/cq5dam.web.1280.1280.png?ch_ck=1631577223000)
For eligibility, funding guidelines and other information about opening a SIMPLE IRA Plus plan, refer to Opening a SIMPLE IRA Plus.
Brochures and enrollment meeting materials
Comparison brochure
Compare the benefits and key features of SIMPLE IRA and SIMPLE IRA Plus plans to determine which option is best for your client.
Review the Understand your SIMPLE IRA options brochure.SIMPLE IRA Plus single sheet
Use this single sheet to provide an overview of the SIMPLE IRA Plus plan setup and enrollment process.
Review the It is easy to set up a SIMPLE IRA Plus plan single sheet.Enrollment meetings
Use the SIMPLE IRA enrollment video and follow these additional steps:
- Schedule the meeting, then allow a 60-day enrollment period
- Provide employees with the SIMPLE IRA Plus Employee Enrollment Guide, SIMPLE IRA Plus Disclosure Statement (located within the guide) and prospectuses
- Collect the completed SIMPLE IRA Plus Enrollment/Change forms located within the guide and return to the plan sponsor
These materials are also available to use:
- Small steps can take you far enrollment guide
- Plan your journey to retirement presentation
View the SIMPLE IRA enrollment video.For an easy, step-by-step guide to setting up a SIMPLE IRA Plus plan, visit Set up a SIMPLE IRA Plus plan.
Common questions
There are several differences between the various SIMPLE plan types. Review Comparing SIMPLE IRA, SIMPLE IRA Plus and SIMPLE 401(k) plans for a comparison chart detailing eligibility, contribution limits and more.
Yes, if the SIMPLE IRA Plus plan offers Roth salary deferral contributions.
The plan sponsor can elect to offer Roth salary deferrals during the plan's establishment or by amending and restating an existing plan, prior to the enrollment period for the following calendar year.
No, participants cannot link their SIMPLE IRA Plus accounts with their other personal accounts. Most SIMPLE IRA Plus accounts are aggregated with other participant accounts that are part of the same plan or that are part of an employer-sponsored retirement plan offered by the same or an affiliated employer.
Exceptions apply in the case of a sole proprietor whose only plan participants are:
- The owner
- Their spouse (regardless of gender)
- Their spouse equivalent, if recognized under local law
- Their children under the age of 21
- Disabled adult children with ABLEAmerica® accounts
Your client will be charged a $25 setup fee. In addition, there is a $25 annual fee charged each December.
If the employer has never maintained a SIMPLE IRA Plus plan, the effective date can be any date between January 1 and October 1 of the applicable year. All subsequent plan years begin on January 1.
Employers are required to make contributions via Automated Clearing House (ACH). Once a new plan is established, the employer or plan administrator is provided with their user ID and instructions for submitting contributions on the Plan sponsor website.
Yes, participants can receive pre-tax and Roth salary deferral contributions if the SIMPLE IRA Plus plan offers Roth salary deferral contributions and the participant elects for both contribution types in the Salary deferral election section of the SIMPLE IRA Plus Enrollment/Change form.
Note: The maximum annual salary deferral contribution limit applies across both pre-tax and Roth deferrals.
Visit Convert a SIMPLE IRA plan to a SIMPLE IRA Plus plan to review what to consider and the steps to take when converting a plan.
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Update
Update participant’s personal information
Update participant’s name
Use this form and submit with supporting documentation. See the form for requirements.
Complete the Name Change Request.
Update participant’s contact information
The participant can update their contact information online through the participant website.
Refer the participant to the Retirement Planning Center.Update participant’s beneficiary information
The participant can update beneficiaries online through the participant website by clicking Add/Update Beneficiaries in the Actions drop-down menu.
Refer the participant to the Retirement Planning Center.
If the participant has experienced a major life event, visit Life events for checklists to assist with account updates they may need to consider.
Update plan information
Update plan contact and address
Use this form to update or remove plan contacts.
Complete the SIMPLE IRA Plus Change of Contact Information form.
Update financial professional
Use this form to change the financial professional and/or update advisory fee payment instructions.
Complete the SIMPLE IRA Plus Financial Professional or Fee Change Request.Change funds or the share class of the plan
Use this form to add, remove or replace funds, change the default fund or change the share class.
Complete the SIMPLE IRA Plus Change of Funds or Share Class form.
Change employer bank information
Use this form to update the bank information on file for salary deferral and employer contributions.
Complete the SIMPLE IRA Plus Bank Change Request.For additional information on which requests are allowed by the financial professional, participant or plan sponsor and how they can be completed, visit Managing SIMPLE IRA Plus plans.
Common questions
Yes, the plan sponsor can elect to offer Roth salary deferral contributions during the SIMPLE IRA Plus plan’s establishment or by amending and restating an existing plan.
Existing plans can be amended and restated prior to the enrollment period for the following calendar year. During enrollment, participants may use the SIMPLE IRA Plus Enrollment/Change form to change their salary deferral election to make Roth salary deferral contributions for the following calendar year.
The following reports are available on the Plan sponsor website:
- Contribution report: Details about employee and employer contributions posted in the plan on an individual participant basis
- Participant report: Details about participants who are invested in the plan’s default fund
- Trust report: Details about all plan and participant activity within a date range
- Transaction report: Details about all transactions
- Asset report: Details about the assets in the plan by funds and money types
- Payroll contributions report: Details about contributions by date range
View accounts, assets, statements and beneficiaries on the Plan sponsor website or on DST Vision® under the myPLANnetwork tab.
Managing your account - SIMPLE IRA Plus is a single sheet to help participants access their account online for the first time. It highlights key website features and savings tools.
Yes, a notification is required by the plan at the beginning of each annual enrollment period. The enrollment period is a 60-calendar-day time frame that allows eligible employees to either enter a new salary deferral agreement or change an existing agreement. Starting in August of each year, Capital Group mails a reminder to Capital Bank and Trust Company (CB&T) SIMPLE IRA Plus plan sponsors to assist them with their employee notification requirement for the upcoming enrollment period.
You can use the SIMPLE IRA enrollment video to help eligible employees enroll.
The SIMPLE IRA Plus plan may be amended and restated if any of the following changes:
- The plan name
- The form of business
- Eligibility requirements
- Employer allocation formula
- Type of plan document used
Visit Amend and restate a SIMPLE IRA Plus plan or contact us for assistance with amending and restating the plan.
Visit Convert a SIMPLE IRA plan to a SIMPLE IRA Plus plan to review what to consider and the steps to take when converting a plan.
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Transact
Contributions
Payroll deduction contributions
Use this form to set up salary deferrals or make changes to an existing deferral amount. Completed forms should be returned to the plan sponsor.
Complete the SIMPLE IRA Plus Enrollment/Change form.
Employer contributions
Contributions must be submitted though the Plan sponsor website. Once a new plan is established, the employer or plan administrator is provided with their user ID and instructions for submitting contributions.
Use the SIMPLE IRA Plus Website user guide for plan sponsors and administrators for assistance.
Visit SIMPLE IRA Plus contributions for additional details about contribution limits, deadlines and more.
Distributions
Take a one-time distribution
The participant can complete a distribution online through the participant website.
Refer the participant to the Retirement Planning Center.
Set up automatic distributions
Use this form to set up automatic distributions.
Complete the IRA Automatic Distribution Request.Take a one-time or recurring required minimum distribution (RMD)
An RMD must be taken from employer-sponsored retirement accounts and IRAs once the participant reaches the age of 73. Use this form to request the distribution.
Complete the Required Minimum Distribution (RMD) Request.Refer to SIMPLE IRA Plus distributions for additional details about distributions, RMDs and more.
Exchanges and rebalances
Complete a one-time exchange or rebalance
The participant can complete an exchange or rebalance online through the participant website.
Refer the participant to the Retirement Planning Center.Transfers and rollovers
Move an external IRA or qualified plan to a SIMPLE IRA Plus at American Funds
Once the participant has met the two-year participation requirement, use this form to request a transfer or direct rollover from an external IRA or qualified plan to a SIMPLE IRA Plus at American Funds.
Complete the SIMPLE IRA Plus Request for Transfer of Assets or Direct Rollover.Move from an American Funds SIMPLE IRA Plus to another IRA or qualified plan
Once the participant has met the two-year participation requirement, use this form to request a rollover or transfer from an existing American Funds SIMPLE IRA Plus to another financial institution or to another American Funds IRA.
Complete the IRA Rollover/Transfer Request.Review IRA incoming transfer and rollover guide and IRA outgoing transfer and rollover guide for additional details about transferring and rolling funds into and out of Capital Group.
Common questions
All SIMPLE IRA Plus contributions must be submitted by Automated Clearing House (ACH) through the Plan sponsor website.
Yes, if the SIMPLE IRA Plus plan offers Roth salary deferral contributions. Existing plans can add the Roth salary deferral option by amending and restating the plan prior to the enrollment period for the following calendar year.
Distributions of pre-tax contributions and earnings are taxable and may also be subject to a 10% federal penalty tax if the participant is under age 59½, unless an exception applies.
Distributions of Roth contributions are tax-free. Earnings on Roth contributions may be withdrawn tax- and penalty-free if the distribution is a qualified distribution.
Refer to SIMPLE IRA Plus tax information for more information.
Participant contributions should be remitted as soon as they can be reasonably segregated from company assets but no later than 30 days after the last day of the month the contributions were withheld. For plans with fewer than 100 participants, contributions deposited no later than the 7th business day following withholding by the employer will be considered timely.
Note: Employer matching or non-elective contributions must be made by the employer’s tax-filing deadline (including extensions) for the applicable tax year.
Financial professionals are restricted from completing transactions in participant accounts. Participants should request a transaction in the Retirement Planning Center.
Yes, check out these additional resources:
This material does not constitute legal or tax advice. Investors should consult with their legal or tax advisors.
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Contact us
Have questions or need additional support?
Contact us 8:00 a.m. to 7:00 p.m. ET, Monday through Friday.
For financial professionals only. Not for use with the public.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Use of this website is intended for U.S. residents only.
The guidelines and procedures provided in the Account Resource Center may not apply to networked accounts or accounts not directly held by American Funds. The guidelines and procedures provided also apply only to those retirement accounts or Coverdell ESAs invested in American Funds with Capital Bank and Trust Company (CB&T) as custodian. The guidelines and procedures provided in the Account Resource Center do not apply to plans held in our retirement plan solutions — PlanPremier, PlanPremier-TPA or RecordkeeperDirect. Information on the Account Resource Center may change periodically, and previously printed information may not be current. Please refer to capitalgroup.com for the most current information available.
Financial professionals should always contact their back office to determine if there are any restrictions on the use of American Funds products, tools, services, websites and literature.