The SIMPLE IRA is designed so that small businesses (less than 100 employees) may offer their employees a tax advantaged retirement program. There are no filing requirements for the employer and no initiation or operating costs. Employers cannot have any other employee sponsored plan…

To open a SIMPLE IRA account with IBKR you will need to use the email invitation that your employer sent to you. By using the link in the email invitation your SIMPLE IRA will automatically be associated with the Employer selected Advisor.  Employees are not obligated to participate or may choose to participate without making their own contributions.  All deposits to the accounts are managed by the Employer, except for transfers from existing SIMPLE accounts held at other firms…

To be eligible to participate in the SIMPLE IRA, you must be an employee earning at least $5,000 during any 2 prior years and that you expect to earn at least $5,000 during the current calendar. 

Note…

The employee can transfer into their SIMPLE IRA from a SIMPLE IRA, Traditional IRA, SEP IRA, as well as from employer-sponsored retirement plans (e.g. 401k, 403b, 457 (b)). SIMPLE IRAs cannot accept rollovers from Roth IRAs or Roth designated employer-sponsored plans…

The SIMPLE IRA is designed so small businesses (less than 100 employees) may offer their employees a tax advantaged retirement program.  There are no filing requirements for the employer and no initiation or operating costs. 

Note…

SIMPLE IRA accounts can only be funded by contributions made through the Employee Plan Administrator (EPA) account.  Employers will fund their EPA account and then distribute the funds to the SIMPLE IRA employee accounts. EPAs will use their Portal to provide Interactive Brokers with instructions for transferring funds to the employee accounts…

Employers can only offer a SIMPLE plan if they do not have any other employer sponsored retirement plans.   SIMPLE IRA accounts can only be opened under a Professional Registered Financial Advisor account with an existing account at Interactive Brokers.  The employer must complete an Employee Plan Administrator (EPA) account application.  In addition to many of the standard account opening documents, applicants will also need to provide IRS Form 5305 where they select a single financial institution ("Interactive Brokers") for all plan accounts…

SIMPLE IRA accounts can only be funded by contributions made through the Employee Plan Administrator (EPA) account.  Employers will fund their EPA account and then distribute the funds to the SIMPLE IRA employee accounts.  EPA’s will use their Portal to provide Interactive Brokers with instruction for transferring funds to the employee accounts…

The SIMPLE IRA account is managed by the Advisor in the same way as all other account types.  Advisors have access to the same suite of trading, management tools and services offered as part of the Advisor program at Interactive Brokers.

Additional Information…

Yes, an employee can withdraw from the SIMPLE IRA whenever they wish. They will be subject to tax requirements.

SIMPLE IRA withdrawals are typically subject to income tax on any amount withdrawn.  Early withdrawals, which are those made prior to the account holder reaching the age of 59 ½, may be subject to an additional tax of 10% or 25%…