SIMPLE IRA
What is a SIMPLE IRA?
A Savings Incentive Match Plan for Employees (SIMPLE) IRA allows you and your employer to contribute to your retirement savings.
Investing can be intimidating, but you don't have to do it alone. Watch this video to learn more.
What Are the Benefits?
Lower Income Taxes
Set aside a portion of your pay before income taxes are withheld.
Higher Contribution Limit
The annual contribution maximum is higher than for IRAs.
Investment Control
You and your employer contribute, but you get to choose your own investments for your retirement plan. The money is always yours, even if you change jobs.
No Loads
You won’t pay any up-front or back-end sales charges* on American Century’s no-load mutual funds.
Guidance at No Additional Cost
Get personal assistance from a dedicated team of Business Retirement Specialists.
How Much Can I Contribute?
Under Age 50
Contribute up to $16,000 via payroll deduction.
Age 50 or Older
Contribute up to $16,000 in payroll deductions, plus $3,500 in catch-up contributions.**
Employer Contributions
Your employer contributes a 1-3% match or a 2% employer contribution.
Custodial fees are waived if you have $10,000 or more in investments; there is a $15 annual custodial fee per fund if you have less than $10,000.
What Are My Investment Options?
A portfolio that matches your investment goals may give you the best chance for investing success.
Whatever your investment style and objectives, we have you covered. Choose from the convenience of an all-in-one fund solution, build your own fully diversified portfolio or complement your current investment mix with funds from our broad lineup.
What About My Other Retirement Money?
Having all your retirement savings in one place can make it easier to track your progress toward your goal. Consider consolidating your investments with American Century. Complete the Request to Transfer form to get started.
How Do I Enroll in My Plan?
1. Complete an Application
Fill out the online SIMPLE IRA Account Application in less than 15 minutes.
2. Review Documents
3. Choose Contributions and Beneficiaries
Complete a Salary Reduction Agreement and return to your benefits or payroll office. Complete a Designation of Beneficiary form and return to us.
Both load and no-load funds have an expense ratio, which is the amount (%) of total investment that shareholders pay annually for mutual fund operating expenses and management fees. The expense ratio is taken out of each fund's current income, is disclosed in the prospectus and can be located on performance tables for each fund.
Limits listed are for 2024. The IRS sets limits annually.
Taxes are deferred until withdrawal if the requirements are met. A 10% penalty may be imposed for withdrawal prior to reaching age 59½.
If withdrawals are made within the first two years of participation in the SIMPLE IRA, the penalty increases to 25%.
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.
This information is for educational purposes only and is not intended as a personalized recommendation or fiduciary advice regarding investment, accounting, legal or tax matters. There are different options available for your retirement plan investments. You should consider all options before making a decision. Our representatives can help you evaluate all of your distribution options.
You could lose money by investing in a mutual fund, even if through your employer's plan or an IRA. An investment in a mutual fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.