ARTICLE TAKEAWAYS
Your dealer firm may have restrictions on the use of the SIMPLE IRA Plus product. Check with your home office if you are unsure if this plan type is approved.
If your dealer firm allows the use of the SIMPLE IRA Plus product, follow these step-by-step instructions to set up a plan.
Have the plan sponsor:
Deadline: To ensure the plan sponsor receives the disclosures with sufficient time to notify employees, send these forms to American Funds at least 10 days prior to the start of the plan's enrollment period.
Plan effective date: The effective date indicated on the adoption agreement must be between January 1 and October 1 and must be during the 60-day enrollment period. All subsequent plan years begin on January 1.
Once the plan is established, have the plan sponsor distribute the following to all eligible employees:
a. Fee and Fund Disclosure*
b. Notification to Eligible Employees**
c. Summary Description**
3. Sample SIMPLE IRA Plus Automatic Contribution Arrangement Notice** (if
applicable)
*American Funds will complete and email to the plan sponsor prior to the plan’s effective date.
**The plan sponsor must complete before distributing.
Enrollment period: Employees must be allowed to enroll for 60 days after they are notified of the plan.
Participant contributions must be submitted online though the Plan Sponsor website. The designated plan contact (and third-party remitter, if applicable) will be provided with the user ID and instructions for getting started.
Participant contributions should be remitted as soon as they can be reasonably segregated from company assets but no later than 30 days after the last day of the month the contributions were withheld. For plans with fewer than 100 participants, contributions deposited no later than the 7th business day following withholding by the employer will be considered timely.
Note: Employer matching or non-elective contributions must be made by the employer’s tax-filing deadline (including extensions) for the applicable tax year.
For financial professionals only. Not for use with the public.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Use of this website is intended for U.S. residents only.
The guidelines and procedures provided in the Account Resource Center may not apply to networked accounts or accounts not directly held by American Funds. The guidelines and procedures provided also apply only to those retirement accounts or Coverdell ESAs invested in American Funds with Capital Bank and Trust Company (CB&T) as custodian. The guidelines and procedures provided in the Account Resource Center do not apply to plans held in our retirement plan solutions — PlanPremier, PlanPremier-TPA or RecordkeeperDirect. Information on the Account Resource Center may change periodically, and previously printed information may not be current. Please refer to capitalgroup.com for the most current information available.
Financial professionals should always contact their back office to determine if there are any restrictions on the use of American Funds products, tools, services, websites and literature.