The election period is generally the 60-day period preceding January 1 of a calendar year (November 2 to December 31). However, the data for this period will be changed if you set up a SIMPLE IRA plan in the middle of the year or if the 60-day period is before the first day a staff member is allowed to participate in the SIMPLE IRA plan. There are three steps to creating a SIMPLE IRA plan. A SIMPLE IRA must be set up by or for any authorized staff member and all contributions to the plan must be paid to them. You can also use a prototype document. An investment fund, insurance company, bank or other qualified institution usually make them available. You may also have a personalized plan. Financial institutions authorized to hold and invest contributions to the SIMPLE IRA plan include banks, savings and credit associations, insurance companies, certain regulated investment companies, state-insured credit unions and brokerage firms. Contributions to the SIMPLE IRA plan can be invested in stocks, investment funds and other similar types of investments.

The investment options available from the institution where the SIMPLE IRA is located determine the types of investment opportunities available to the employee when making decisions regarding the establishment of their SIMPLE IRA accounts. You and your employees will receive a statement from the financial institutions that invest your contributions to the SIMPLE IRA plan, both at the time of the first contributions of the SIMPLE IRA plan and at least once a year thereafter. Each institution must provide a simple statement of all fees and commissions it collects on SIMPLE IRA assets. An ERI adoption agreement must be accompanied by a basic planning document explaining how a plan works. Video “Why SEP or simple IRAS are trouble-free retirement plans” – a debate about two types of pension plans (SEP and SIMPLE IRA) suitable for many companies. You can use form PDF 5304-SIMPLE or form 5305-SIMPLE PDF to set up a SIMPLE IRA plan. Each form is a simple plan document (Savings Incentive Match Plan for Employees). You can set up a SIMPLE IRA plan valid at any time from January 1 to October 1 of a year, provided that you have not previously maintained a SIMPLE IRA plan. This requirement does not apply if you are a new employer who, after October 1st on October 1st of the year in which the SIMPLE IRA plan will be implemented and you set up a SIMPLE IRA plan as soon as it is administratively feasible after the existence of your company. . .

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