Set up a SIMPLE IRA Plus plan

ARTICLE TAKEAWAYS

  • Find the paperwork needed to set up a SIMPLE IRA Plus plan
  • Learn how to enroll eligible employees
  • Understand how contributions are submitted

Your dealer firm may have restrictions on the use of the SIMPLE IRA Plus product. Check with your home office if you are unsure whether this plan type is approved.

If your dealer firm allows the use of the SIMPLE IRA Plus product, follow these step-by-step instructions to set up a plan.

Step 1: Set up the plan

Have the plan sponsor:

  1. Complete the SIMPLE IRA Plus Plan Specifications and the SIMPLE IRA Plus Adoption Agreement located in the SIMPLE IRA Plus Plan Sponsor Guide. You can provide the plan sponsor with the It’s easy to set up a SIMPLE IRA Plus plan single sheet for an overview of the enrollment process.
  2. Keep a copy of the Plan Specifications and Adoption Agreement for their records
  3. Return the completed forms to Capital Group. Copies are acceptable.

Deadline: To ensure the plan sponsor receives the disclosures with sufficient time to notify employees, send these forms to Capital Group at least 10 days prior to the start of the plan’s enrollment period.

Plan effective date: The effective date indicated on the Adoption Agreement must be between January 1 and October 1 and must be during the 60-day enrollment period. All subsequent plan years begin on January 1.

Step 2: Notify eligible employees

Once the plan is established, have the plan sponsor distribute the following to all eligible employees:

  1. SIMPLE IRA Plus Employee Enrollment Guide (which includes the SIMPLE IRA Plus Enrollment/Change form)
  2. SIMPLE IRA Plus Employee Disclosures

a.  Fee and Fund Disclosure*
b.  Notification to Eligible Employees**
c.  Summary Description**

       3.    Sample SIMPLE IRA Plus Automatic Contribution Arrangement Notice** (if
              applicable)

* Capital Bank and Trust Company will complete and email to the plan sponsor prior to the plan’s effective date.
** The plan sponsor must complete these before distributing.

Enrollment period: Employees must be allowed to enroll for 60 days after they are notified of the plan.

Step 3: Schedule an enrollment meeting

  1. Consider using the SIMPLE IRA enrollment video during the meeting. This video can help employees understand the benefits of the plan and why they should participate.
  2. Provide prospectuses for all of the plan’s investment options

Step 4: Enroll employees

  1. Collect the completed SIMPLE IRA Plus Enrollment/Change forms located in the Employee Enrollment Guide and return them to the plan sponsor. Do not return these to Capital Group. If the $25 setup fee is not paid by the participant, it will be deducted from their account.
  2. Have the plan sponsor use the enrollment forms to enter the information on the Plan sponsor website

Step 5: Submit contributions online

Participant contributions must be submitted online through the Plan sponsor website. The designated plan contact (and third-party remitter, if applicable) will be sent an email providing them with a link to the website, the user ID and instructions for getting started.

For additional information on contributions, deadlines and more, visit SIMPLE IRA Plus contributions.

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SIMPLE IRA Plus contributions
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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.

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