The number of participants in SIMPLE IRA plans also rose in this time frame, with a 6% rise seen, according to a survey published by the Investment Company Institute (ICI). For the same time frame in 2003, the number of these plans offered rose by 5%, as did the number of participants.
SIMPLE IRA assets invested in mutual funds grew at a rate of 17%, less than the 27% gains seen in the first half of 2003.
According to a news release by ICI, the SIMPLE IRA continues to be a favorite of small business owners. A majority of SIMPLE IRA plans have 10 or fewer participants.
The ICI survey was based on responses from 24 firms which represent approximately 74% of the $20 billion of SIMPLE IRA assets which are invested in mutual funds as of the end of 2003.