What is the SIMPLE IRA?

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…

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…

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…