Men and women standing around talking with text overlay, "SIMPLE IRA".


Save for the future? Yes! It’s convenient with your employer’s retirement plan.

Congrats! You're One of the Lucky Ones

Your employer's SIMPLE IRA plan gives you a convenient way to save for everything you want to experience in your future. And saving now doesn't mean you have to give up other priorities. Like managing life! Set up your account in less than 5 minutes. Your future self with thank you.

Check this off the list of smart (and convenient) things to do today.

SIMPLE IRAs—The 401(K) of Small Businesses

So, what is this SIMPLE IRA plan you have? Similar to a 401(k), you contribute to the plan right from your paycheck, and your employer matches up to a certain amount. Watch the video to learn more.

Don't miss out on the match; join now!

Understanding Target-Date Investments

Choose Investments That Fit You

An important part of investing in your plan is selecting investments. Having a mix of different kinds—such as stocks, bonds and cash equivalent (like money markets)—is a strategy that may help reduce market risk and potentially give you a better chance of hitting your goal.

Co-workers laughing in office with text overlay, "Investments that fit you."

Two Ways to Choose the Right Mix for You

1. Choose a Pre-Built Portfolio

Our One Choice® Target Date Portfolios take the guesswork out of choosing investments with a mix of different funds hand-picked by our professionals. They also continue to manage and rebalance the portfolio when needed. Choose a portfolio based on the date you want to retire or start using the money.

Choose by Date

Our diversified target-date funds¹ automatically adjust as the target goal date approaches. Choose the one that most closely aligns with when you plan to start using your money.

Choose by Risk

Our target-risk funds offer you instant diversification. These portfolios are built using up to 15 underlying mutual funds to help balance risk and return.

Additional share class may be available to select plans.

A One Choice Target Date Portfolio's target date is the approximate year when investors plan to retire or start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date.

Each target-date One Choice Target Date Portfolio seeks the highest total return consistent with American Century Investments' proprietary asset mix. Over time, the asset mix and weightings are adjusted to be more conservative. In general, as the target year approaches, the portfolio's allocation becomes more conservative by decreasing the allocation to stocks and increasing the allocation to bonds and cash equivalents.

By the time each fund reaches its target year, its target asset mix will become fixed and will match that of One Choice In Retirement Portfolio.

2. Build a Portfolio On Your Own

Choose different investment types for a well-rounded portfolio. That may include a variety of stock and bond funds, as well as cash equivalent investments, such as a money market fund. The investment mix you select should align with your risk comfort level, your timeline and investment goal. Creating this kind of diversified portfolio can potentially offer a smoother ride through market volatility.

Explore the retirement plan fund options* and the Prime Money Market fund** for your plan.

Additional share class may be available to select plans.

Money Market Fund: You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon sale of your shares. An investment in the fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor is not required to reimburse the fund for losses, and you should not expect that the sponsor will provide financial support to the fund at any time, including during periods of market stress.

Make an investment choice, and you're on your way.

Calculate Why Saving Now Makes Sense

Will it matter if you join your plan now or wait? Yes! You may be surprised at how regular investing can add up and how little you notice the difference on your paycheck when you contribute. That's because your contributions are pre-tax—before state and federal taxes—meaning you pay less income tax. Use our calculators to see for yourself what investing now could mean for you.

Calculate the Difference on Your Paycheck

Find out how your contributions will affect your paycheck.

See How Investing Can Add Up

See how regular investing and compounding can affect the value of your investment over time.

Have Questions? These FAQs May Help!

What is a SIMPLE IRA, and how is it good for me?
SIMPLE IRA stands for Savings Incentive Match Plan for Employees of Small Employers Individual Retirement Account. By participating in your company's SIMPLE IRA plan, you can take advantage of these benefits now:

  • Convenience: Contributions are automatically withdrawn from your paycheck and invested in your account according to your instructions.

  • Lower taxes: Contributions are withdrawn pre-tax (before federal and state taxes), reducing your taxable income. In addition, earnings on your SIMPLE IRA are tax deferred, meaning you won't pay taxes until you withdraw the money.

  • Always yours: Since this is your account and not your employer's, you control your money, even if you change jobs.

SIMPLE IRAs are a smart choice for investing in your future. Don't miss out on this opportunity.

Can I participate in a SIMPLE IRA if I participate in a retirement plan with another employer?
Yes. If you work for more than one employer, you may participate in both plans. Note that certain contribution limits across the plans may still apply.

Can all employees participate in a SIMPLE IRA?
Generally, any employee who earned at least $5,000 during two prior years and is expected to earn $5,000 in the current year must be eligible to participate in a SIMPLE IRA. However, your employer may exclude certain union employees or impose less stringent requirements. Please refer to the Summary Plan Description provided by your employer for your plan's specific rules.

Who controls my SIMPLE IRA?
You are always in control of your SIMPLE IRA, including how much you invest and when you start withdrawing your money.

Even contributions your employer makes to your SIMPLE IRA become yours when they are invested in your account. The contributions are immediately 100% vested (meaning they are always yours).

Who Is American Century Investments®?
Since 1958, American Century Investments has helped millions of clients invest for their futures and what we all want: financial independence. But it's not business as usual. It's personal too. Our story starts with a powerful vision to help people achieve financial success. For over 60 years, our performance-first focus has not waivered, but it's also not the end of the story. How we invest matters too. For us, it means contributing 40% of our profits to find cures for diseases that touch us all. Like cancer. And Alzheimer's. The better we do for you, the better we do for everyone. And when you invest with us, you also join in making a difference for the world.

Why are ADP and American Century Investments working together to offer SIMPLE IRAs?
ADP is a leader in offering payroll services to small businesses, and American Century Investments manages money for people around the world. Working together, we aim to deliver an industry-leading SIMPLE-IRA program to help small businesses, their owners, and their employees successfully prepare for the future.

How much can I contribute?

  • The IRS sets pre-tax salary contribution limits every year, and employees who are 50 and older may be able to make additional catch-up" contributions.

  • Choose a percentage or flat dollar amount to be automatically deducted from each paycheck. You will provide these instructions in the account application, and you can make changes at any time by logging into your account portal at

How much does my employer contribute?

  • Your employer can match 100% of your salary deferrals up to the first 3% of your pay or a 2% non-elective contribution to all eligible employees. In years your employer chooses to match, they may elect a lower percentage, but not lower than 1% of your pay. This option is only allowed up to two years of any five years.

  • Your employer must notify you which type of contribution they will make before the 60-day election period each plan year if the match will be below 3%.

  • If your employer elects to make the 2% non-elective contribution, you may be required to earn up to $5,000 in compensation to be eligible.

  • Like your contributions, any employer contributions are invested in your SIMPLE IRA in the fund(s) you select.

Is my employer required to contribute to my SIMPLE IRA?
Yes, your employer must either match or make non-elective contributions every year. Your employer must notify you of the contribution type and percentage before you become eligible to participate in the plan and at the beginning of each annual 60-day election period. This period is the time you have to start or modify your salary reduction agreement—which tells how much you will contribute for the upcoming year.

When can I withdraw my money?

  • Your money must stay in a SIMPLE IRA for two years from your initial contribution date, or you could have a 25% IRS withdrawal penalty. After two years, standard IRA withdrawal rules apply (see below).

  • You may withdraw money penalty-free beginning when you turn 59½ years old.

  • If you withdraw before 59½ years old, you may have to pay significant taxes and penalties. A SIMPLE IRA is a long-term investment to help fund your future.

Are there any fees?
You will be charged $15 per fund annually. The fee is waived if your eligible investments total $10,000 or more. We calculate your total investments on the second Friday of November each year. If your investments total less than $10,000 at that time, we will redeem shares from your account to pay the fee.

I already enrolled in a SIMPLE. How do I consolidate other retirement accounts?
To get a complete retirement outlook, consider consolidating all your retirement savings in one place. You can move your investments to your new SIMPLE account by completing a Request to Transfer form. Consolidate now.

I have money in a retirement plan from my old employer. Can I roll it into my SIMPLE?
Now that you have a SIMPLE plan, you may consider consolidating money from an old 401(k), 403(b) or another retirement plan. We can review your options and help you consolidate to keep that money on track for your future. Our dedicated rollover consultants can help you through the process quickly and easily. Call 1-800-982-6002 to speak with one today.

Questions About Your Plan or Need Help?

Call us at 1-877-288-5969 or request to have one of our specialists call you.

Already Have an Account?

If you already have a SIMPLE IRA account, log in here.

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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. 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.

Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.

Diversification does not assure a profit nor does it protect against loss of principal.

ADP, LLC, ADP Broker-Dealer, Inc., and their affiliates (collectively, "ADP") and American Century Investment Services, Inc. and its affiliates (collectively, "American Century") are independent contractors. Nothing in the following materials or agreements should be construed to create or provide for any other relationship between ADP and American Century, including but not limited to joint venture or partnership. Neither ADP nor its affiliates provide investment or tax advice to participants, alternate payees or beneficiaries (collectively, "Participants") in retirement plans to which they provide recordkeeping or administrative services ("Retirement Plans"), nor serve in a fiduciary capacity with respect to Retirement Plans.

You should consider the fund's investment objectives, risks, charges and expenses carefully before you invest. The fund's prospectus or summary prospectus, which can be obtained by calling 1.800.345.2021, contains this and other information about the fund, and should be read carefully before investing. Investments are subject to market risk.

American Century Investment Services, Inc., Distributor