American funds simple ira investment options
American Funds Retirement Plan Services provide more of what you need to meet the k challenge, including: Our k and b plan solutions also include robust recordkeeping, which includes daily valuation, contribution tracking, distribution processing, tax reporting and options for Roth contributions and participant loans. Businesses with or fewer employees, including state and local governments and tax-exempt organizations, are eligible for SIMPLE IRAs. The employer may also specify less restrictive eligibility requirements on the SIMPLE adoption agreement to expand the group of employees who are eligible.
Aggregation of participant IRA accounts under a SIMPLE IRA plan depends on the plan agreement selected by the plan sponsor. When a plan sponsor signs an American Funds prototype agreement, all plan contributions are required to come to American Funds. When a sponsor selects another prototype of an IRA Model Agreement, some of the contributions may come to American Funds, but the participants are not required to establish an account with American Funds. As a result, accounts will be aggregated as follows:.
Mutual of America - Interest Account & Investment Options
A carefully monitored retirement glide path means no more manual reallocation for you. Customization - Build a retirement savings portfolio of your preferred American Funds, or select a single-fund option. Either way, you control the investment mix.
Class A and C shares are available for American Funds, the American Funds Portfolio Series and the American Funds Target Date Retirement Series.
An American Funds SEP plan removes many of the key obstacles that prevent small-business owners from offering a retirement plan:.
Any small business, including sole proprietors, small companies both for-profit and tax-exempt and government entities are all eligible for SEP plans. Any employee who has worked for three of the past five years and is 21 or older is eligible. Certain employees can be excluded, such as:. Customization — Build a retirement savings portfolio of your preferred American Funds, or select a single-fund option. The American Funds and funds in the American Funds Portfolio Series and the Target Date Retirement Series are available in A or C share classes.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. For an investment offered through a group annuity, some of this information may differ and can be obtained from a financial professional. Americas Asia Pacific Europe Canada United States.
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More Capital Group Sites Capital Group Worldwide corporate site Private Markets. Americas Asia Pacific Europe Back Canada United States. Back Austria Luxembourg Belgium Netherlands Denmark Norway Finland Portugal France Spain Germany Sweden Iceland Switzerland Ireland United Kingdom Italy Other. The number of options depends on share class and platform selected.
Open architecture with target date conversion 2. American Funds is a respected provider of SIMPLE IRAs, a tax-deferred retirement plan solution designed specifically for small businesses. Ease of use, exceptional service and quality investment options at a competitive cost make American Funds the SIMPLE choice. Benefits of an American Funds SIMPLE plan: Easy to establish and maintain Flexible plan design and online contributions No IRS reporting or testing Access to the same wide selection of quality American Funds investments as Fortune companies.
Eligible employers Businesses with or fewer employees, including state and local governments and tax-exempt organizations, are eligible for SIMPLE IRAs. All employer contributions are immediately vested. All participant contributions are immediately vested.
Employers & Plan Sponsors | American Funds | American Funds
The participant controls the distributions. Participant deferrals and earnings grow tax-free until withdrawn at retirement. Deferrals are reported on W-2 forms and subject to FICA, FUTA and Railroad Retirement Tax RRTA.
No IRS reporting or testing is required. Limited fiduciary responsibility Fiduciaries have limited liability since Individual Retirement Accounts IRAs are set up for each eligible employee, and participants control their own investment choices.
Ongoing American Funds education materials are available on retirement and investment issues on our Financial Advisor site. Establishment and funding deadlines Plan establishment - SIMPLE plans must be established by October 1 of the current calendar year provided a SIMPLE IRA was not previously maintained exceptions may apply for new employers.
The plan can be established as long as the employer signed the adoption agreement on or before October 1 of the applicable year. Because SIMPLE plans have fewer than participants, SIMPLE IRA sponsors can take advantage of the 7-day safe harbor rule. Making investments Employers are required to submit investments electronically through our Online Group Investments website , which simplifies the contribution process and offers the following benefits: Contributions are made with the click of a button from the company bank account.
Access transactional history and update participant information anytime. A quicker online contribution process makes it easier to comply with retirement plan funding deadlines. No mailing and handling time required. Keep transactions safe and secure through our website data security rather than risking lost or misdirected mail. Employers can choose from a variety of payroll roster creation methods to find the one that fits their needs.
Online processing allows the employer to work around his or her schedule.
Participants can monitor their investments and make exchanges via: Aggregating accounts Aggregation of participant IRA accounts under a SIMPLE IRA plan depends on the plan agreement selected by the plan sponsor. As a result, accounts will be aggregated as follows: Using the American Funds prototype SIMPLE IRA plan agreement will cause the participant account values to be aggregated for reduced sales charges on Class A shares.
When the group assets reach a breakpoint, all plan participants benefit from the reduced sales charge.
This plan may be advantageous for participants already invested in American Funds or those who plan to establish personal accounts in the future.
An American Funds SEP plan removes many of the key obstacles that prevent small-business owners from offering a retirement plan: Low setup and maintenance costs Flexible, discretionary contribution limits There is no requirement to make ongoing contributions, and a SEP plan can be discontinued at any time.
Low administrative burden Minimal paperwork and tax filing requirements.
Fidelity International Usage Agreement
Online resources allow for fast, simple and secure transactions, 24 hours a day. Limited fiduciary liability Accounts are set up by eligible employees, and participants control their own investment choices. One employee is enough A SEP works even for sole proprietors. Eligible Employers Any small business, including sole proprietors, small companies both for-profit and tax-exempt and government entities are all eligible for SEP plans. Eligible Employees Any employee who has worked for three of the past five years and is 21 or older is eligible.
Certain employees can be excluded, such as: Contributions can vary or not be made at all, depending on profitability, cash flow or other factors by the employer. No participant contributions are allowed. Contributions are immediately vested. Employer contributions are deductible from pretax profits. Top-heavy and testing are required.
Annual IRS Form and Department of Labor filings are not required. Limited Fiduciary Responsibility Fiduciaries have limited liability since Individual Retirement Accounts IRAs are set up for each eligible employee, and participants control their own investment choices.
Establishment and Funding Deadlines Plan establishment: Making Investments Employers submit investments electronically through our Online Group Investments website , which simplifies the contribution process and offers the following benefits: Using the American Funds prototype SEP plan agreement will cause the participant account values to be aggregated for reduced sales charges on Class A shares. Contact Us Follow Us. PRIVACY Portfolio Agreement Business Continuity Capital Group Worldwide.