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Benefits September 28, 2004
SIMPLE IRA Plans Growing in Number
September 28, 2004 (PLANSPONSOR.com) - The SIMPLE
IRA market is again increasing in size, with a 5% rise in the
number of plans seen in the first half of 2004.
Reported by Kip McDaniel
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.