Set up a SIMPLE IRA plan

Follow these step-by-step instructions to set up a SIMPLE IRA plan.

Once the plan is established, schedule an enrollment meeting and have the plan sponsor distribute the following to all eligible employees:

1. SIMPLE IRA Notification to Eligible Employees located in the SIMPLE IRA Plan Sponsor Guide
2. Summary Description for the SIMPLE IRA Plan located in the SIMPLE IRA Plan Sponsor Guide
3. SIMPLE IRA Salary Deferral Election located in the SIMPLE IRA Plan Sponsor Guide
   
   

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

1. At the beginning of the 60-day enrollment period, distribute the following to all eligible employees:
   • SIMPLE IRA enrollment video, which helps the plan participants enroll in 15 minutes or less
   • SIMPLE IRA Employee Guide, which contains the SIMPLE IRA Application
   • Prospectuses for all of the plan’s investment options
2. Collect the completed applications and Salary Deferral Elections from employees
3. Mail the following to American Funds Service Company:
   • Each participant's American Funds SIMPLE IRA Application
   • A payment of $10 for each new participant establishing an account. If the setup fee is not included, $10 will be deducted from each participant's account.

Employee contributions must be submitted online though the Online Group Investments (OGI) 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.

Employee contributions should be submitted as soon as they can be reasonably segregated from company assets and no later than 30 days after the last day of the month the contributions were withheld.

Note: Employer matching or non-elective contributions must be made by the employer’s tax-filing deadline (including extensions) for the applicable tax year.