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SIMPLE IRA

These materials are directed generally at investment professionals and their clients. Individuals are encouraged to seek advice from their financial, legal, tax and other appropriate advisers before making any investment or financial decisions or purchasing any financial, securities or investment related product or service, including any product or service described in these materials. Amundi Pioneer does not provide investment advice or investment recommendations.


SIMPLE IRA

Firms with 100 or fewer employees can establish a SIMPLE IRA – an employee savings program that in some ways resembles a 401(k). Employees can make pretax contributions through payroll deduction for 2017 of up to $12,500 ($15,500 if age 50 or older) per year. Employers pay no administration costs and direct all contributions to individual SIMPLE IRAs. Since employer contributions are required each year, this plan makes sense for businesses with predictable income.
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Who May Establish Employers with 100 or fewer employees, including sole proprietors, partnerships, corporations, government and nonprofit and entities. Must be employer's only plan.
Establishment Deadline January 1 through October 1.¹
Contribution Deadline Employee contributions withheld each pay period. Employer contributions by tax filing date including extensions.
Who Contributes Employer and employees.
Annual Contribution Limit² Employees can defer up to $12,500 ($15,500 if age 50 or older) in 2016 with no percentage of pay limit. Employer makes additional required contributions.
Contribution Requirements Employer must make required 3% match or 2% of pay contribution for eligible employees each year.³
Employee Eligibility All employees earning $5,000 or more in any two prior years and expected to earn $5,000 in current year.
Vesting Always 100% for both employer and employee contributions.
Withdrawals Allowed anytime, subject to income tax. A 10% penalty (25% during first two years of participation) may apply before age 59½.
Loan Feature Not available.
Plan Administration None.

Visit the Download forms page for more information on what you need to open or modify a
SIMPLE IRA account.

 

1Employee notice must be given before plan establishment date.

2For 2016, up to $12,500 ($15,500 if age 50 or older).

3Employer may reduce match below 3% (but not below 1%) in two of every five years.

 

This material is not intended to replace the advice of a qualified attorney, tax advisor, or insurance agent. Before your client makes any financial commitment regarding the issues discussed here, make sure he or she consults with the appropriate professional advisor.

Before investing, consider the product's investment objectives, risks, charges and expenses. Contact your advisor or Amundi Pioneer for a prospectus or summary prospectus containing this information. Read it carefully. To obtain a free prospectus or summary prospectus and for information on any Pioneer fund, please download it from our web site.

 

Before investing, consider the product's investment objectives, risks, charges and expenses. Contact your advisor or Amundi Pioneer for a prospectus or summary prospectus containing this information. Read it carefully. To obtain a free prospectus or summary prospectus and for information on any Pioneer fund, please download it from our literature section.

 

Securities offered through Amundi Pioneer Distributor, Inc.,
60 State Street, Boston, MA. 02109.
Underwriter of Pioneer mutual funds, Member SIPC. 
© 2017 Amundi Pioneer Asset Management

 

Not FDIC insured | May lose value | No bank guarantee