- Low set-up costs compared to other plans
- Easy management; less paperwork
- Employer contributions are a deductible business expense
- Employer sets employee eligibility based on business needs
- Employer Contributions: Match employee salary deferrals dollar for dollar up to 3% of the employee's compensation or a flat 2%2 of each eligible employee's compensation
- Employee Contributions: Payroll deductions up to $12,500* and always 100% vested
- Employees age 50+: Additional catch-up contributions up to $3,000*
*Limits listed are for 2017. The IRS sets limits annually.
Deadline to Establish
October 1 of the year the plan becomes effective
- Employers of any business type with no more than 100 employees that earned $5,000 or more in the previous calendar year
- Employer may not maintain another plan in the same year as the SIMPLE
Participant Custodial Fees
Waived if investments total $10,000 or more; $15 annual custodial fee per fund if less than $10,000
- Distribute Model Notification to Eligible Employees annually
- Distribute Summary Plan Description to eligible employees annually
Print this poster to promote the SIMPLE plan to your employees.
Support & Guidance
- Wide range of no-load mutual funds available
- One-on-one guidance, plus education and tools to help you and your employees plan for retirement
- Easy online access to track investments and make changes
- Secure Plan Sponsor Access website for convenient management
1 For purposes of determining the 100 employee limitation, all employees employed at any time during the calendar year are taken into account, regardless of whether they are eligible to participate.
2 Contributions may only be based on the first $270,000 of compensation, as adjusted.
3 Additional employer responsibilities apply.
IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.
This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.
Diversification does not assure a profit nor does it protect against loss of principal.