2024 SIMPLE IRA sample disclosure documents

Important SECURE 2.0 Act changes effective 2024

Smaller employers (no more than 25 employees): 

  • If you have no more than 25 employees (who received compensation of at least $5,000 in the preceding year), higher employee salary deferral and catch-up contribution limits* generally apply. Indicate the appropriate limits in Section 4 of the Notification to Eligible Employees.
     

Larger employers (more than 25 employees): 

  • If you have more than 25 employees (who received compensation of at least $5,000 in the preceding year), higher employee salary deferral and catch-up contribution limits* apply if you decide to make 4% matching or 3% nonelective employer contributions. Otherwise, regular limits generally apply. Indicate the appropriate limits in Section 4 of the Notification to Eligible Employees.

  • If you are interested in offering 4% matching or 3% nonelective employer contributions, use the modified version of the Notification to Eligible Employees.
     

All employers: 

  • You have the option to make additional nonelective contributions above required matching or nonelective contributions. This additional contribution must be made to all eligible employees and cannot exceed the lesser of 10% of compensation or $5,000.
     

* The higher limits are not effective until 2024. As of the date of this email, the IRS has not published contribution limits for 2024. Typically, the IRS announces limits for the following year on www.irs.gov in late October. The Notification to Eligible Employees includes figures that illustrate what the higher limits would have been had they been in effect for 2023.

As a plan sponsor, your responsibilities include:

  1. Preparing and distributing the disclosure documents to your eligible employees prior to November 2, 2023. Note: “Eligible employees” include all employees qualified to participate in the plan, not just those who currently make salary deferral contributions to the plan.

  2. Conducting the 2024 plan year enrollment from November 2, 2023, through December 31, 2023.

Here are your 2024 sample disclosure documents (PDF):

  • Notification to Eligible Employees.** This document informs employees of their eligibility to participate in the plan and announces the type of contribution you will make for the next plan year. Complete this document before distributing it to eligible employees. 

  • Summary Plan Description. This document covers the plan’s provisions, including eligibility requirements. Complete this document before distributing it to eligible employees.

    • o Plan Information: Provide the name of the company, address, EIN and employer contact.

    o Eligibility Requirements: Complete if applicable. Refer to Section 3 of your plan’s Adoption Agreement if necessary .

  • Salary Deferral Election. Employees use this document to indicate whether they wish to start, maintain or change salary deferral elections. You do not need to complete this document before distributing it to eligible employees.

** Includes references to the 2023 contribution limits because the 2024 limits are not available yet.

Get prepared

Make sure your plan contact information is up-to-date.

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