Amend a SIMPLE IRA Plus plan

ARTICLE TAKEAWAYS

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

For employers with existing SIMPLE IRA Plus plans, changes to the plan may require the plan to be amended, prior to the enrollment period for the following calendar year. 

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

  • 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:

  • When a SIMPLE IRA Plus plan is amended, 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

How to amend an existing SIMPLE IRA Plus plan

Step 1

The plan sponsor must:

  1. Amend their plan by completing the SIMPLE IRA Plus Adoption Agreement located in the SIMPLE IRA Plus Plan Sponsor Guide. Complete all relevant sections, not just those the plan sponsor is updating. In Section 2, select "B" for amending an existing plan. 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 for their records
  3. Return the completed forms to American Funds. Copies are acceptable.

Plan effective and enrollment dates: The changes to 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. The SIMPLE IRA Plus Enrollment Change form, which is located in the SIMPLE IRA Plus Employee Enrollment Guide
  2. SIMPLE IRA Plus Employee Disclosures
    1. Fee and Fund Disclosure*
    2. Notification to Eligible Employees**
    3. Summary Description**
  3. Roth SIMPLE IRA Plus Trust Agreement and Disclosure Statement (if the plan is being amended to offer Roth salary deferral contributions)
  4. 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 these before distributing.

Step 3

 
  1. 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.
  2. Have the plan sponsor use the SIMPLE IRA Plus Enrollment/Change forms to enter the information on the Plan sponsor website
log in to client accounts

Related content

SIMPLE IRA Plus
Managing SIMPLE IRA Plus plans
SIMPLE IRA Plus sample disclosure documents

 

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