ARTICLE TAKEAWAYS
For employers with existing SIMPLE IRA plans, changes to the plan may require the plan to be amended, prior to the enrollment period for the following calendar year.
The SIMPLE IRA plan must be amended if any of the following changes:
The plan sponsor is responsible for preparing and distributing disclosure documents to all eligible employees prior to the enrollment period, November 2 through December 31 of the current year.
Please note the following:
The plan sponsor must:
If the plan amends to add Roth employee salary deferral contributions, the plan sponsor must also provide copies of the Roth SIMPLE IRA Custodial Agreement and Disclosure Statement to all eligible employees.
1 The plan sponsor must complete before distributing.
2 Capital Group will send the plan sponsor these documents prior to November 2. They can also be found in the SIMPLE IRA Plan Sponsor Guide.
Note: For SIMPLE IRA plans that offer Roth salary deferral contributions, a participant's Capital Bank and Trust Company (CB&T) SIMPLE IRA and CB&T Roth SIMPLE IRA are considered the same IRA type. Only one setup fee and one annual fee are charged for the participant.
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.