A SIMPLE (Savings Incentive Match PLan for Employees) IRA 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?
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).
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).
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.
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.
Two types of contributions: salary deferral and employer contributions, may be made to a SIMPLE IRA.
Salary deferral contributions may be made up to 100% of compensation (not to exceed $12,500 -- $15,500 for investors age 50 and older -- for the 2016 plan year).
Employer contributions may either:
Match employee contributions dollar for dollar up to 3% of compensation to a maximum $12,500 -- $15,500 for investors age 50 and older -- for the 2016 plan year. (Can be reduced to as low as 1% in any two out of five years.)
Equal 2% of each eligible employee's compensation, up to $5,300 for 2016.
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).
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.
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.
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.
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.
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.
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.
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.
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.