What is a SIMPLE IRA?

SIMPLE IRA stands for Savings Incentive Match Plan for Employees of Small Employers Individual Retirement Account.

By participating in your company's SIMPLE IRA plan, you can take advantage of these benefits now:

• It's convenient: Contributions are automatically withdrawn from your paycheck and invested in your SIMPLE IRA according to your instructions.

• It lowers taxes: Contributions are withdrawn on a pre-tax basis (before federal and state taxes) which lowers your taxable income. In addition, the earnings on your SIMPLE IRA are tax deferred which means you won't pay taxes until you withdraw the money.

• It's always yours: Since this is your account and not your employer's, you remain in control of your money, even if you change jobs.

SIMPLE IRAs are a smart choice for retirement investing. Don't miss out on this opportunity to take control of your financial future.

May I participate in a SIMPLE IRA if I participate in another retirement plan sponsored by another employer?

Yes. If you work for more than one employer, you may also participate in another retirement plan in addition to your SIMPLE IRA, but certain contribution limits across the plans may still be applicable.

Are all employees eligible to participate in a SIMPLE IRA?

Generally, any employee who has earned at least $5,000 during any two prior years and who is expected to earn $5,000 in the current year must be eligible to participate in a SIMPLE IRA. However, your employer may choose to exclude certain union employees, or the employer may impose less stringent requirements. Please refer to the Summary Plan Description provided by your employer for the rules specific to your plan.

Who controls my SIMPLE IRA?

• You are always in control of your SIMPLE IRA—you control how much you invest and when you start withdrawing your money.

• The contributions your employer makes to your SIMPLE IRA become your property when they are invested in your account. The contributions are immediately 100% vested.

Who is American Century Investments^®?

American Century Investments has a powerful vision: Help people like you achieve financial success for goals like retirement. For over 65 years, our commitment has not waivered. Being client- and performance-focused was the first step, but not the end of the story. The vision also includes significant, ongoing contributions to humanity through funding breakthrough medical research. Both inspire us to do what we believe is right every day—including advocating principles such as diversification. We make it possible by offering more than 30 mutual funds across all major investing disciplines from which to choose. Or you can opt for a convenient pre-diversified portfolio built by our professionals. Either way, you'll experience professionally and actively managed mutual funds, exceptional service and people who are passionate about helping you reach your goal. We think it adds up to a great value for you.

How much can I contribute?

• According to IRS limits, eligible employees may make pretax salary contributions, and employees age 50 and older may be able to make an additional "catch-up" contribution.

• You are able to choose either a percentage or flat dollar amount which will be automatically deducted from each paycheck. You will provide these salary deferral instructions on the Salary Reduction Agreement form.

How much can my employer contribute?

• Your employer has the option to match 100% of your salary deferrals, up to the first 3% of your compensation, or a 2% non-elective contribution to all eligible employees. In years that your employer chooses matching, they may elect to match a lower percentage, as long as it is not lower than 1% of your compensation. This option is only allowed for up to two years of any five-year period.

• The employer must notify you which type of contribution they will make prior to the 60-day election period each plan year.

• If your employer elects to make the 2% non-elective contribution, you may be required to earn up to $5,000 in compensation to be eligible for a contribution.

• Just like your contributions, any employer contributions will be invested in your SIMPLE IRA in the fund(s) you have selected.

Is my employer required to contribute to my SIMPLE IRA?

Yes, your employer must make either matching or non-elective contributions each year. Your employer must notify you of the contribution type and the contribution percentage prior to your initial eligibility and at the beginning of each annual 60-day election period (the 60 days during which you may enter into or modify your salary reduction agreement for the following year).

When can I withdraw my money?

• Your money must stay in a SIMPLE IRA for two years from your initial contribution date or the withdrawal maybe subject to a 25% IRS penalty. After two years, the normal IRA distribution rules apply (see below).

• You may withdraw money penalty-free beginning on the day you turn 59½ years old.

• If you withdraw money prior to 59½ years old, you may have to pay significant taxes and penalties. A SIMPLE IRA is intended to be a long-term investment to be used to help fund your future retirement.

Are there any custodial fees assessed?

You will be charged a $15 fee from each participant account. The fee is calculated on the second Friday in November of each year.

I have money in a retirement plan from my old employer. Can I roll it into my SIMPLE plan?

Now that you have a SIMPLE retirement plan, you may want to consider consolidating money from an old 401(k), 403(b) or other retirement plan.

American Century Investments^® can review your options and help you consolidate which may help you stay on track toward a successful retirement. Our dedicated rollover consultants can help you through the process quickly and easily.

Call 1-888-963-9847 to speak with one of our Business Retirement Specialists today.