Amend and restate a SIMPLE IRA Plus plan

ARTICLE TAKEAWAYS

  • Examples of when a SIMPLE IRA Plus plan may need to be amended and restated 
  • The steps required to amend and restate a SIMPLE IRA Plus plan

For employers with existing SIMPLE IRA Plus plans, changes to the company structure and/or plan eligibility may require the plan to be amended and restated, prior to the enrollment period for the following calendar year. 

The SIMPLE IRA Plus plan must be amended and restated if any of the following changes:

  • The plan name or employer identification number (EIN)
  • Eligibility requirements
  • Adding/removing the Roth salary deferral option
  • Type of plan document used
     

The plan sponsor is responsible for preparing and distributing disclosure documents to all eligible employees prior to the enrollment period, November 2 through December 31 of the current year. Elections made during the enrollment period become effective on January 1 of the following year.

Please note the following:

  • Generally, when a SIMPLE IRA Plus plan is amended and restated, it will be effective January 1 of the following year*
  • The Internal Revenue Service requires the current SIMPLE IRA Plus plan to continue to operate as is for the current calendar year
     

* Changing the plan name or EIN or adding a related company can be completed at any time during the year.

How to amend and restate an existing SIMPLE IRA Plus plan

Step 1

The plan sponsor must:

  1. Amend and restate their plan by completing the SIMPLE IRA Plus Plan Specifications and the SIMPLE IRA Plus Adoption Agreement located in the SIMPLE IRA Plus Plan Sponsor Guide. If a plan contact is changing, the SIMPLE IRA Plus Change of Contact Information form is also required.
  2. Keep a copy of the adoption agreement and plan specifications for their records
  3. Return the completed forms to American Funds. Copies are acceptable.

Deadline: To ensure the plan sponsor receives the disclosures with sufficient time to notify employees, send these forms to Capital Group at least 10 days prior to the start of the plan’s enrollment period. 

Plan effective and enrollment dates: The SIMPLE IRA Plus plan will be effective January 1 of the following year. The 60-day enrollment period begins on November 2.

Step 2

The plan sponsor must communicate the plan changes to all eligible employees prior to the November 2 start of the enrollment period by providing the following forms:
 
  1. SIMPLE IRA Plus Employee Enrollment Guide (which includes the SIMPLE IRA Plus Enrollment/Change form)
  2. SIMPLE IRA Plus Employee Disclosures
    1. Fee and Fund Disclosure*
    2. Notification to Eligible Employees**
    3. Summary Description**
  3. Sample SIMPLE IRA Plus Automatic Contribution Arrangement Notice ** (if applicable)
     

* Capital Group will email the plan sponsor a link to these documents prior to November 2.
** The plan sponsor must complete before distributing.

Step 3

Consider scheduling an enrollment meeting prior to November 2. During the meeting:

  1. Share the SIMPLE IRA enrollment video. This video can help employees understand the benefits of the plan and why they should participate.
  2. Provide prospectuses for all of the plan’s investment options
  3. Collect the completed SIMPLE IRA Plus Enrollment/Change forms (located within the guide) and return them to the plan sponsor. Do not return these to Capital Group.
  4. Have the plan sponsor use the SIMPLE IRA Plus Enrollment/Change forms to enter the information on the Plan sponsor website
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Related content

SIMPLE IRA Plus

Managing SIMPLE IRA Plus plans

SIMPLE IRA Plus sample disclosure documents

 

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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.

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