Workplace Savings SIMPLE IRA

SIMPLE IRA Screenshot

A SIMPLE IRA gives you & your employees 401(k)
-style features for less

A Savings Incentive Match Plan for Employees (SIMPLE) – is an affordable, IRA-based retirement savings program designed with some of the characteristics of a 401(k) in mind. It can be established by any employer with no more than 100 employees during the preceding calendar year.

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SIMPLE IRA

Make saving for retirement SIMPLE

A SIMPLE IRA allows both you and your employees to save for retirement through work. A SIMPLE IRA allows you to contribute part of your pre-tax compensation to an IRA. This means the tax on the money is deferred until withdrawal.

As the employer, you are required to make either matching contributions or non-elective contributions on behalf of your employees, (non-elective means the contribution is made for each eligible employee regardless of whether the employee contributes).

Plan Details

Who's Eligible?

Employees that received at least $5,000 in compensation during any two preceding years, regardless of whether or not those two years happened consecutively, and are expected to earn at least $5,000 during the current calendar year are allowed to participate.

Employees cannot opt-out of participation; however, they can choose not to contribute for a year. You can also exclude employees under certain circumstances.
Visit the IRA website for SIMPLE IRA Plan Participation FAQs.

IRS Participation FAQs
How Do I Contribute as an Employer?

As an employer, you have two options for how you can contribute to your employees’ IRAs:

1. Match employee contributions dollar-for-dollar up to 3% of compensation, or

2. Make 2% nonelective contributions to all employees.

In two years of any five-year period, you may reduce the required dollar-for-dollar match to as low as 1% of participant employee compensation. There are additional instances where employer contributions may vary from the above descriptions.

How Do My Employees Contribute?

An employee may defer up to $13,000 in 2019. Employees age 50 or older can make a catch-up contribution of up to $3,000.

Employee contributions will be chosen by each employee and expressed either as a percentage of compensation for the year, or as a specific dollar amount.

Visit the IRS website for more details on Simple IRA Plan Contribution FAQs.

IRS Contribution FAQs

Features & Benefits

Investment Options

You and your employees will have access to diverse, flexible investment choices, including a list of mutual funds and other investments selected and maintained by Morningstar, a registered advisory firm.

Learn more about Morningstar

Automatic Enrollment

Automatic enrollment has been proven to more than double participation rates in retirement plans, and with a SIMPLE IRA from Millennium Trust you can elect to have eligible employees automatically enrolled in your new plan. 

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Participating employees can also elect to have Automatic Elective Deferral Increases to help them save more for retirement.

Visit IRS website

SIMPLE IRA Pricing

Fees to the Employer
Set-up fee              $250

Fees to the Employees
Annual Account Fee    $40
Annual Servicing Fee    50 basis points*

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*Financial comparisons use basis points to track very small percentages. One basis point is simply 1/100 of one percent.

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