2024 SIMPLE IRA Plus sample disclosure documents

Important SECURE 2.0 Act changes effective 2024

Smaller employers (no more than 25 employees):

  • If you have no more than 25 employees (who received compensation of at least $5,000 in the preceding year), higher employee salary deferral and catch-up contribution limits1 generally apply. Indicate the appropriate limits in Section 4 of the Notification to Eligible Employees.


Larger employers (more than 25 employees): 

  • If you have more than 25 employees (who received compensation of at least $5,000 in the preceding year), higher employee salary deferral and catch-up contribution limits1 apply if you decide to make 4% matching or 3% nonelective employer contributions. Otherwise, regular limits generally apply. Indicate the appropriate limits in Section 4 of the Notification to Eligible Employees.

  • If you are interested in offering 4% matching or 3% nonelective employer contributions, use the modified version of the Notification to Eligible Employees.


All employers:

  • You have the option to make additional nonelective contributions above required matching or nonelective contributions. This additional contribution must be made to all eligible employees and cannot exceed the lesser of 10% of compensation or $5,000.


1 The higher limits are not effective until 2024. As of the date of this email, the IRS has not published contribution limits for 2024. Typically, the IRS announces limits for the following year on www.irs.gov in late October. The Notification to Eligible Employees includes figures that illustrate what the higher limits would have been had they been in effect for 2023.

As a plan sponsor, your responsibilities include:

  1. Preparing and distributing the disclosure documents to your eligible employees prior to November 2, 2023.
    Note: “Eligible employees” include all employees qualified to participate in the plan, not just those who currently make salary deferral contributions to the plan. 

  2. Conducting the 2024 plan year enrollment from November 2, 2023, through December 31, 2023.

 

Here are your 2024 sample disclosure documents (PDF):

The 2024 sample disclosure documents are also emailed to plan sponsors prior to the beginning of the enrollment period.

  • Notification to Eligible Employees.2 This document informs employees of their eligibility to participate in the plan and announces the type of contribution you will make for the next plan year. Complete this document before distributing it to eligible employees.
     
  • Summary Plan Description. This document covers the plan's provisions, including eligibility requirements. Complete this document before distributing it to eligible employees.
    • Plan Information: Provide the name of the company, address, EIN and employer contact.
    • Eligibility Requirements: Complete if applicable. Refer to Section 3 of your plan's Adoption Agreement if necessary.

Here are some additional documents you may need:

  • SIMPLE IRA Plus Enrollment/Change form.3 During the enrollment period, your eligible employees may elect to make salary deferral contributions for the first time, continue their current salary deferrals or change their existing elections.

  • Automatic Contribution Arrangement Notice. If your plan includes an Automatic Contribution Arrangement, eligible employees must also receive a notice describing the arrangement prior to each enrollment period.

2 Notification to Eligible Employees (4% Matching or 3% Nonelective Contributions). This document applies to plans with more than 25 employees (who received compensation of at least $5,000 in the preceding year) that will make 4% matching or 3% nonelective employer contributions.

3 Note: Includes references to the 2023 contribution limits because the 2024 limits are not available yet.

Other resources

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