Frequently
Asked Questions about SIMPLE IRAs
A SIMPLE IRA Plan is a salary reduction retirement
plan. That simply means that
your employees decide how much
they want to save for retirement — and that
amount is
automatically deducted from their salary each pay period before
federal income taxes are withheld. These amounts are then contributed
to
a SIMPLE IRA for each participant. While SIMPLE IRA Plans
are funded in part
by employee salary reduction contributions,
they do require employer contributions.
See the questions below to get information you need.
For more specific questions, e-mail us at info@MidasFunds.com or
contact Midas Funds Shareholder Services at 1-800-400-MIDAS
(6432), 8 a.m.-6 p.m. Eastern Time.
What
are the eligibility requirements for opening a SIMPLE IRA
plan?
How
do I open a SIMPLE IRA plan for my business?
What about opening
participant accounts?
When
must my employees be notified of their eligibility to participate
in the plan?
How
is the Salary Deferral process managed and who gets the paperwork?
What
are the SIMPLE IRA contribution limits?
What
funds are eligible for investment in a SIMPLE IRA?
How
do I get a copy of my Custodial Agreement or a Plan level
report?
My
business is growing. Am I still eligible for a SIMPLE IRA
Plan?
Why
should I make my plan contributions electronically?
What
if I change my bank?
I
can't remember my PIN. How do I log in to The Midas Touch?
My
plan's monthly contributions are always the same. Is there
a way to
automatically re-enter the data each month on The
Midas Touch?
How
do I correct a contribution error once it has been processed
on The Midas Touch?
Why
am I being prompted that my current contribution will be
overridden?
What are the eligibility requirements for opening a SIMPLE
IRA plan? Which Employers Can Establish a SIMPLE IRA
Plan?
Generally, SIMPLE IRA plans can be
established by any business with 100 or fewer employees who
earned $5,000 or more in the preceding year, and which does
not currently maintain any other retirement plan. See more
information about SIMPLE
IRAs or call a Shareholder Service Representative at 1-800-400-MIDAS
(6432).
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How do I open a SIMPLE IRA plan for my business? What about
opening participant accounts?
Sole proprietors can download and
complete a SIMPLE
IRA account application and include that along with their
plan documents.
For plans with multiple participants,
contact a Shareholder Service Representative at 1-800-400-MIDAS
(6432).
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When must my employees be notified of their eligibility to
participate in the plan?
You are required to provide eligible
employees with a Summary Description and Participant Notice
when the plan is established and on an annual basis. To open
a SIMPLE IRA Plan for the current year, the plan must be established
and employees notified by October 1; please note that an exception
applies for businesses established after October 1.
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How is the Salary Deferral process managed and who gets the
paperwork?
Your employees complete the
Salary Investing Plan Form and return it you or your payroll
office. A
sample salary reduction agreement form is available. You
may use this form or create your own customized version.
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What are the SIMPLE IRA contribution limits?
Two types of contributions: salary
deferral and employer contributions, may be made to a SIMPLE
IRA.
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Salary
deferral contributions may be made
up to 100% of compensation (not to exceed $10,500
-- $13,000 for investors age 50 and older -- for
the 2007 plan year).
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Employer
contributions may either: |
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|
 Match
employee contributions dollar for dollar up to 3% of
compensation to a maximum $10,500
-- $13,000 for investors age 50 and older -- for
the 2007 plan year. (Can be reduced
to as low as 1% in any two out of five years.)
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Equal
2% of each eligible employee's compensation, up to $4,500 for 2007. |
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What funds are eligible for investment in a SIMPLE IRA?
Your SIMPLE IRA account may buy or
exchange any fund as long as the minimum initial and subsequent
investment limits are met.
You
should carefully consider the investment objectives, risks,
charges and expenses of mutual funds before investing or
sending money. For a free prospectus, which contains this
and other important information about the Midas Funds, please contact
us or download
here. Read the prospectus carefully before you invest
(or send money).
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How do I get a copy of my Custodial Agreement, Plan Summary
or a Plan level report?
You can download
a pdf of your Plan Custodial Agreement, or contact a
Shareholder Service Representative at 1-800-400-MIDAS
(6432) for a copy and additional Summary Descriptions.
The Summary Description is mailed to plans annually. Plan
level reports are sent on a monthly basis to every SIMPLE
IRA Plan. The report includes a total of all salary deferral
and employer contributions made for the period, is broken
out by participants, and includes a participant level breakout
of contributions.
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My business is growing. Am I still eligible for a SIMPLE IRA
Plan?
Generally speaking, you are eligible
for a SIMPLE IRA as long as your business has fewer than 100
employees earning $5,000 or more in the preceding year. As
you grow, other retirement plans may become more appropriate.
Please contact a Shareholder Service Representative at 1-800-400-MIDAS
(6432) for more information.
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Why should I make my plan contributions electronically?
Electronic contributions and online
allocations are a fast and easy way to manage your SIMPLE IRA
plan. The Midas Touch Account Access is available online
24 hours a day, seven days a week. It helps insure accurate
processing and keeps plan administrative costs low, and it
makes recordkeeping easier by storing historical plan information,
such as YTD contributions.
*There is a maintenance period where
some services may not be available.
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What if I change my bank?
You need to notify Midas Funds Shareholder
Services in writing that you have changed your bank. Once the
information has been updated at both institutions - this may
take up to 10 business days - you will receive notification
of the date your changes will become effective and you can
resume using The Midas Touch for account access. Your
funding account number will remain the same.
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I can't remember my PIN. How do I log in to The Midas Touch?
If you have logged in incorrectly
three times, your Midas Touch account will be blocked
as a security precaution. Contact a Shareholder Service
Representative at 1-800-400-MIDAS
(6432) between 8:00 am and 6:00 pm ET Monday through
Friday for help.
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My plan's monthly contributions are always the same. Is there
a way to automatically re-enter the data each month on The
Midas Touch?
Yes. There is an option on The
Midas Touch's contribution year screen, to pre-enter
previous contribution amounts. You can update this option
if the amounts change.
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How do I correct a contribution error once it has been processed
on The Midas Touch?
Contact a Shareholder Service Representative
at 1-800-400-MIDAS
(6432) between 8:00 am and 6:00 pm ET Monday through
Friday if you need to change a contribution after it has been
processed.
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Why am I being prompted that my current contribution will be
overridden?
If you recently entered a contribution
that has not yet been processed and try to enter a conflicting
contribution, you will be alerted that your current order will
override, or delete, your previous entry. Unless you intend
to replace the earlier contribution, you must wait until your
previous entry has been processed. Back
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Prospectus
