Keep Your SIMPLE IRA Plan Active

One Annual Task, Three Easy Steps

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A SIMPLE IRA plan is one of the easiest retirement plans to manage. Employers must complete just one annual requirement no later than November 1 each year. Keep you and your employees investing for retirement next year by following the three steps below.

  1. Step 1: Complete IRS Form 5305-SIMPLE

    Download the IRS Form 5305-SIMPLE. Complete the articles below.

    Articles I – III outline the provisions of your plan regarding employee eligibility, salary reduction agreements and contributions.

    Article VII is where you will enter the plan's effective date. You will also need to sign in this section.

  2. Step 2: Complete the Model Notification to Eligible Employees on Page 3

    This section helps you notify employees that they are eligible to participate in the plan. It also tells them about the SIMPLE IRA contributions they will receive from you (as plan sponsor) next year.

  3. Step 3: Notify Employees by November 1

    • Give copies of the completed form to all employees who are eligible to participate in the plan next year.

    • File the document with your records. Do not return it to American Century Investments.

    For more information about the notification requirement, refer to Page 7 of the 5305 form.

Notify Newly Eligible Employees throughout the Year

File your completed form where you have easy access to it. You will need to give this information to employees who become eligible to participate in the plan next year.

American Century Investments® Not Your Designated Financial Institution?
The steps above are for plans where American Century Investments has been named the designated financial institution. If we are no longer your plan's designated financial institution or you no longer maintain a SIMPLE IRA plan, please notify us at 1-800-345-3533.
Need Help?
Have questions about your year-end requirements or your plan? Take a moment to review our FAQ flyer that can assist in answering your questions prior to calling us at 1-800-345-3533.


Call us to speak to a Business Retirement Specialist.

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 material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.