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. Locate Your Current IRS Form 5305-SIMPLE

    Review the plan provisions on your 5305-SIMPLE form. If you want to make changes for next year, you’ll need to complete a new 5305-SIMPLE form. If no changes are needed, you can continue to use your current form.

    Note: If you are unable to locate your current form, you can complete a new 5305-SIMPLE form.

  2. Complete the Required Forms

    IRS Form 5305-SIMPLE: Complete Articles I, II, III and VII of this form to change your plan provisions for next year. If you are not making any changes, please disregard this form.

    Model Notification: Document the employer contributions that will be made, then use this form to notify employees that they are eligible to participate in the plan.

    SECURE 2.0 Act SIMPLE Plan Changes: Use this form to incorporate SECURE 2.0 Act contribution provisions into your plan. Changes include the addition of employee Roth contributions, increased contribution limits for certain plans, and a discretionary non-elective contribution.

  3. Notify Employees by November 1

    Provide a copy of your completed IRS Form 5305-SIMPLE, Model Notification and SECURE 2.0 Act SIMPLE Plan Changes to eligible employees by November 1.

    Keep the originals with your records. Do not send your forms to American Century Investments.

Notify Newly Eligible Employees Throughout the Year

File your completed forms where you have easy access to them. You will need to provide a copy to employees who become eligible to participate in the plan within 60 days of their becoming eligible.

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.

Questions?

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.