American Funds is a respected provider of SIMPLE IRAs, a tax-deferred retirement plan solution designed specifically for small businesses.
American Funds offers two SIMPLE solutions for businesses with 100 or fewer employees:
A collection of individual IRAs with a participant-level advisor relationship.
Higher contribution limits — Participants can contribute more than with a traditional IRA, and employer contributions or matching are required.
Tax benefits — Employer contributions qualify as a tax-deductible business expense.
Affordable cost — A $10 one-time setup fee and an annual $10 fee, both per participant.
Flexible pricing — Class A and C shares for commissionable models and Class F-2 shares for fee-based models.
Easy plan design — No complex IRS reports to complete and no annual nondiscrimination testing required.
Quality investments — A wide range of 35+ American Funds, including the American Funds Target Date Retirement Series®.
SIMPLE IRA Plus
A 401(k)-style experience with a plan-level advisor relationship. In addition to many of the same benefits as a SIMPLE IRA, SIMPLE IRA Plus offers:
Cost typically lower than 401(k) — A $25 one-time setup fee and an annual $25 fee, both per participant.
Institutional pricing — Choose from 401(k) plan share classes — commissionable R-3 and fee-based R-5E.
Easier plan administration — Online enrollment, plan-level reports, and online contributions can reduce the time spent managing the plan.
Qualified plan default option — Participants who don't make an investment selection can be defaulted into a qualified default investment alternative, such as a target date fund.
Investment menu customization — Help improve participant outcomes by choosing which American Funds to make available.
Check with your home office for availability.