Custodian Millennium Trust Company and recordkeeper Paychex, Inc. have partnered to offer a SIMPLE IRA (Savings Incentive Match Plan for Employees Individual Retirement Account) for employers with 100 or fewer employees.
The SIMPLE IRA gives employers the opportunity to automatically enroll employees into the plan, as well as escalate their deferrals every year, and offers them investment fiduciary services.
“Small businesses increasingly recognize the important of retirement plans in attracting and retaining talent, but there are barriers that keep them from investing in employer-sponsored workplace savings solutions,” says Gary Anetsberger, CEO of Millennium Trust. “A SIMPLE IRA plan is a low-fee retirement savings plan that offers many of the same features found in 401(k) and state-based retirement savings programs, including auto enrollment and auto escalation.”
Citing 2016 data from Pew Charitable Trusts, Terry Dunne, Millennium Trust’s managing director of retirement services, notes that “approximately 40% of Americans don’t have access to retirement benefits plans at their place of work.”