SIMPLE IRA

Before you get started

A SIMPLE IRA is an employer-sponsored retirement plan designed for companies with 100 or fewer employees. Participants in the plan can make salary deferral contributions into their account. Employers make matching or non-elective contributions for their eligible employees into their accounts.

Consider talking to your financial professional before performing financial transactions. They can help you make decisions that support your long-term financial plan.

• Participants with a Capital Bank and Trust Company (CB&T) SIMPLE IRA can view and update their personal contact information online. Changes to contribution amounts or investment instructions should be referred to the employer or plan administrator.
  
  
• Participants in certain plans, including SIMPLE IRA Plus, should use their plan ID to determine the appropriate URL to access their account
  
  
  • If your plan ID begins with IRK, BRK or 2, visit americanfunds.com/retire
  • If your plan ID begins with 34 or 135, visit myretirement.americanfunds.com

SIMPLE IRA account updates

Participants with CB&T SIMPLE IRAs can log in to:

• Update personal information, including the mailing address, phone number and email address on the account
• Exchange or rebalance shares within the account
• Download and print quarterly statements
• Name or update the beneficiary(ies) listed on the account

SIMPLE IRA contributions

Contributions into a SIMPLE IRA represent employee elected salary deferrals and employer matching or non-elective contributions.  To change or update your deferral amounts or the funds your deferrals are invested into, contact your employer.

• In 2024, for salary deferral contributions, participants in a SIMPLE IRA plan can contribute up to $16,000 or $19,500 for those age 50 or over
• Employers are required to make either matching or non-elective contributions to all eligible participants each year. The contribution type must be announced and provided to eligible employees each year in the plan’s disclosure documents.

SIMPLE IRA distributions

Most distributions from a CB&T SIMPLE IRA can be requested over the phone or by logging in to your account. For more information on distributions from a SIMPLE IRA, including possible taxes and penalties and required minimum distributions, visit SIMPLE IRA distributions.  

The total amount of distributions, including any federal or state income taxes withheld, is reported on Form 1099-R, available in late January.

Note: SIMPLE IRAs do not allow for loans.

SIMPLE IRA exchanges

Participants with CB&T SIMPLE IRAs can exchange and/or rebalance shares in their account to other available American Funds by logging in or over the phone.

SIMPLE IRA transfers of assets and rollovers

Money in other employer-sponsored retirement plans can generally be rolled over or transferred into a SIMPLE IRA. There are additional considerations when moving money into a SIMPLE IRA, including:

• You must have participated in the SIMPLE IRA plan for 2 years before a rollover or transfer of assets from a different type of IRA or qualified plan can be accepted
  
  
• If you are no longer employed by the plan’s sponsoring employer, you must have met the 2-year participation requirement before the money can be transferred or rolled over to an IRA or another retirement plan. Check with the receiving plan to ensure it accepts money from other retirement plans.
  
  
• Money from another SIMPLE IRA can be rolled over or transferred into a SIMPLE IRA at any time
   

For information on transferring or rolling over money into a CB&T SIMPLE IRA, contact us or your financial professional. You can also visit IRA incoming rollovers and transfers for information on moving retirement assets into a CB&T IRA.