Small Employers Still Embrace SIMPLE Solution
The survey, conducted by the Investment Company Institute (ICI), indicates that between December 31, 2001, and June 30, 2002, the number of SIMPLE IRA plans rose 7%, the number of participants increased 9%, and SIMPLE IRA assets invested in mutual funds were up 7%. That is somewhat slower than the pace at the first half of 2001, where the number of plans rose 11%, participants covered increased 16%, and the assets invested in mutual funds were 14% higher.
For 2001 as a whole, the number of SIMPLE IRA plans increased 21%, the number of participants rose 24%, and SIMPLE IRA assets invested in mutual funds increased about 38%, according to the ICI.
The report notes that most SIMPLE IRA plans have 10 or fewer participants.
The ICI survey results were based on the responses of 25 provider firms, representing an estimated 73% of the $11 billion of SIMPLE IRA assets invested in mutual funds at year-end 2001.
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