Keep Your SIMPLE IRA Plan Active
One Annual Task, A Few Easy Steps
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 steps below.
To keep your plan provisions the same, refer to the SIMPLE IRA Adoption Agreement you completed and received from ADP. Check your digital files in case you did not print it. The IRS requires you to complete these steps every year, even if you don't change your plan.
Keeping Your Plan Provisions the Same?
Follow These Steps
Step 1: Complete the Participation Notice & Summary Description
The Participation Notice & Summary Description document 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.
Step 2: If you have auto enrollment in your plan, complete the Notice of Automatic Enrollment
The Notice of Automatic Enrollment document describes the auto enrollment process and explains the investment available in auto enrollment.
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 the form to American Century Investments or ADP.
Changing Your Plan Provisions? Notify ADP, too.
Follow These Steps
Step 1: Complete the SIMPLE IRA Adoption Agreement and Participant Notice & Summary Description
The SIMPLE IRA Adoption Agreement is to amend and restate the official plan provisions for your plan, while the Participation Notice & Summary Description document helps you notify employees that they are eligible to participate in the plan and explains plan provisions. It also tells them about the SIMPLE IRA contributions they will receive from you (as the plan sponsor) next year.
Step 2: If you have auto enrollment in your plan, complete the Notice of Automatic Enrollment
The Notice of Automatic Enrollment document describes the auto enrollment process and explains the investment available in auto enrollment.
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.
Step 4: Notify ADP of the changes to the plan or changes to matching amounts
If you are making changes to your plan provisions or matching amount, send your signed documents to ADP in one of the following ways:
Email: [email protected]
Mail:
ADP, Inc.
Attn: SIMPLE IRA
71 Hanover Road
M/S 580
Florham Park, NJ 07932
Questions About Changing Your SIMPLE IRA Plan?
Please contact ADP at 1-800-664-5446.
Notify Newly Eligible Employees throughout the Year
File your completed forms where you have easy access to them. You will need to give this information to employees who become eligible to participate in the plan next year.
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.
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.