SIMPLE IRA
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Open
Set up a SIMPLE IRA plan
Employer forms
Use these forms to set up a Simple IRA plan, including a plan with Roth salary deferral contributions.
Complete the forms in the SIMPLE IRA Plan Sponsor Guide.Employee form
Use this form to enroll eligible employees into the plan.
Complete the form in the SIMPLE IRA Employee Guide..png/_jcr_content/renditions/cq5dam.web.1280.1280.png?ch_ck=1631577223000)
For eligibility, funding guidelines and other information about opening a SIMPLE IRA plan, refer to Opening SIMPLE IRAs.
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.
Enrollment meeting
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 Employee Guide and prospectuses
- Provide the SIMPLE IRA Salary Deferral Election forms to be returned to the employer
- Return the completed applications, which are found in the guide, to the plan sponsor. Do not return these to Capital Group.
These materials are also available to use:- Small steps can take you far enrollment guide
- Fund literature
Go to the SIMPLE IRA enrollment video.For an easy, step-by-step guide to setting up a SIMPLE IRA plan, visit Set up a SIMPLE IRA 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 for eligibility, contribution limits and more.
No, participants cannot link their SIMPLE IRA accounts with their other personal accounts. Most SIMPLE IRAs 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.
An exception applies in the case of a sole proprietor whose only plan participants are:
- The owner
- Their spouse
- Their spouse equivalent, if recognized under local law
- Their children under the age of 21
- Disabled adult children with ABLEAmerica® accounts
Refer to Share classes and breakpoints for additional information on reducing the sales charge and the fund prospectus for additional details on aggregating accounts.Your client will be charged a $10 setup fee per IRA account type. If the $10 setup fee is not included with the application, Capital Bank and Trust Company will deduct $10 worth of shares from the new account. In addition, there is a $10 annual fee per IRA account type charged each December.
Note: For SIMPLE IRA plans offering Roth salary deferral contributions, participants with both a CB&T SIMPLE IRA and CB&T Roth SIMPLE IRA will be charged only one setup fee and one annual fee.If the employer has never maintained a SIMPLE IRA 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. Once a new plan is established, the employer or plan contact is provided with their user ID and instructions for submitting contributions on the Online Group Investments (OGI) website.
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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 address
Update the address via the participant’s online account. Use the options on the right side of the page.
Note: There is a 10-calendar-day wait to process a distribution to the new address unless the distribution request is submitted in writing with a signature guarantee.
Log in to Client Accounts.
Update participant’s contact information
A participant’s email address and/or phone number can be updated on DST Vision or by contacting us.
Log in to DST Vision.Update participant’s bank account to sell shares
Use this form.
Note: There is a 10-calendar-day wait to process a distribution to the new bank account unless the distribution request is submitted in writing with a signature guarantee.
Complete the Add/Update Bank Information form.
If your client 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 plan-level information.
Complete the Online Group Investments (OGI) Submitting Contributions form.Change employer bank information
The plan contact can update the bank information on the Online Group Investments (OGI) website. Alternatively, use this form to change the bank account on file.
Complete the Online Group Investments (OGI) Submitting Contributions form.
For more information on how to make updates to the plan, visit Managing SIMPLE IRAs.
Update participant beneficiaries
Designate or update IRA beneficiaries
Use this form to add or update IRA beneficiary information. Alternatively, your client may be able to make the change by logging in to their account on the investor website.
Complete the IRA Beneficiary Change form.Order the IRA beneficiary designations report
This report lists clients who have either not made a beneficiary designation or not updated their beneficiary designation in the past 5 years.
Order the report.
To learn about the different types of beneficiaries, visit IRA beneficiary designations.
Common questions
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 SIMPLE IRA 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. Refer to Managing SIMPLE IRAs for more information.
Yes, existing plans can add the Roth salary deferral option by amending the plan prior to the enrollment period for the following year.
During enrollment, participants may use the SIMPLE IRA Salary Deferral Election form to change their salary deferral election to make Roth salary deferral contributions for the following calendar year.
Yes, but the employer will need to remove the former employee from the contribution roster. Since traditional IRA contributions are not allowed in the plan, once the former employee has met the 2-year requirement, they can transfer the assets to a traditional IRA and continue to save for retirement.
The employer must complete a plan-level Financial Professional Change Request for a SIMPLE IRA plan. The dealer and financial professional information is updated on all eligible participants’ accounts, except for those where the participant has requested a prior change. Once the participant changes the account to a different dealer firm, the employer can no longer change the dealer firm information for that participant.
To make changes to the participant’s fund allocations for future contributions, call us at (800) 421-4225, ext. 39 for assistance. To reallocate the existing funds in their account, an exchange or rebalance can be processed online, by phone or by mail.
The SIMPLE IRA plan may be amended 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 a SIMPLE IRA plan or contact us for assistance with amending the 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 Salary Deferral Election form.Employer contributions
Contributions must be submitted through the Online Group Investments (OGI) website. Once a new plan is established, the plan contact is provided with their user ID and instructions for submitting contributions. For additional assistance using the OGI website, contact us at (800) 421-4225, ext. 39.
Visit the OGI website.
For additional details about contribution limits, deadlines and more, visit SIMPLE IRA contributions.
Distributions
Take a one-time distribution
Funds can be sent via check or Automated Clearing House (ACH) if the client’s bank account is already linked. Access the client’s account online and click Sell.
Log in to Client Accounts.
Set up automatic distributions
Funds can be sent automatically by setting up an automatic distribution plan.
Complete the IRA Automatic Distribution Request.
Take a one-time required minimum distribution (RMD)
If you already know the RMD amount, you can complete a one-time distribution online. Access the client’s account online and click Sell. Visit the Required Minimum Distribution (RMD) Guide for more information.
Log in to Client Accounts.
Set up automatic RMDs
Use this form to set up automatic RMDs. Capital Group will calculate the RMD amount each year and distribute the funds based on the selected schedule and delivery method.
Complete the Required Minimum Distribution (RMD) Request.
For additional details about distributions, RMDs and more, visit SIMPLE IRA distributions.
Exchanges and rebalances
Complete a one-time exchange or rebalance
A one-time exchange or rebalance can be processed by logging in to Client Accounts and selecting the appropriate option: Exchange or Rebalance.
Log in to Client Accounts.Set up an automatic exchange or rebalance plan
Automatic exchange and rebalance plans can be set up or modified online. Access the client’s account online and click Automatic Transactions.
Log in to Client Accounts.
For additional details about one-time and automatic exchanges and rebalances, visit SIMPLE IRA exchanges and rebalances.
Transfers and rollovers
Move an external IRA or qualified plan to a SIMPLE IRA at Capital Group
Once the participant has met the 2-year participation requirement, use this form to request a transfer or direct rollover from an external IRA or qualified plan to a Capital Bank and Trust Company (CB&T) SIMPLE IRA.
Complete the Request for Transfer of Assets or Direct Rollover.
Move from a Capital Group SIMPLE IRA to another IRA or qualified plan
Once the participant has met the 2-year participation requirement, use this form to request a rollover or transfer from an existing CB&T SIMPLE IRA to another financial institution or to another CB&T IRA.
Complete the IRA Rollover/Transfer Request.
For additional details about transferring and rolling funds into and out of Capital Group, visit the IRA incoming transfer and rollover guide or the IRA outgoing transfer and rollover guide.
Common questions
Specifying the employer and salary deferral contribution year is an optional feature that is used for recordkeeping purposes only. The contribution roster can be modified online if the status is “in progress.” If the roster has been submitted, contact us at (800) 421-4225, ext. 39 for assistance. Review the Online Group Investments website user guide for additional information.
All SIMPLE IRA contributions must be submitted by ACH through the Online Group Investments (OGI) website. Instructions and login information are emailed to the employer and plan contact when the plan is established.
Yes, existing plans can add the Roth salary deferral option by amending the plan prior to the enrollment period for the following year.
During enrollment, participants may use the SIMPLE IRA Salary Deferral Election form to change their salary deferral election to make Roth salary deferral contributions for the following calendar year.
No, but once they’ve met the 2-year requirement, they can transfer the assets to a traditional IRA and continue to save for retirement.
Distributions of pre-tax contributions and earnings are taxable and may also be subject to a 10% federal tax penalty (25% if the participant hasn’t been in the plan for 2 years) 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 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.
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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.
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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.
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