August 20, 2025

By Electronic Submission

Mr. Andres Garcia
Internal Revenue Service
Room 6526
1111 Constitution Avenue NW
Washington, DC 20224

Re: OMB Control No. 1545–1502 – Comment Request for Form 5304–SIMPLE, Form 5305–SIMPLE, and Notice 98–4

Dear Mr. Andres Garcia:

The Securities Industry Financial Markets Association,¹ Investment Company Institute,² and PenServ Plan Services, Inc.³ appreciate this opportunity to submit this letter to the Internal Revenue Service in response to the information collection renewal request for Form 5304 SIMPLE, Form 5305-SIMPLE (together, “SIMPLE IRA Forms”), and Notice 98-4 (OMB Control No. 1454-1502). We request that the notice and forms be updated to address changes for SIMPLE IRAs made by the SECURE 2.0 Act, including mid-year plan replacements (section 332), non-elective contributions (section 116), increased contribution limits (section 117), treatment of student loan payments as elective deferrals for purposes of matching contributions (section 110), and Roth contributions (section 601). Further, we request these updates as soon as possible, given that these SIMPLE IRA Forms (and certain other related items as described below) are the mechanism by which many SIMPLE IRA service providers communicate important plan features, limits, and rules. Lastly, we request certain transition relief as described at the end of this letter.

The information collection request (ICR) proposes extending an approved collection for the SIMPLE IRA Forms and Notice referenced above with no changes and requests comments on, among other items, ways to enhance the quality, utility, and clarity of the information to be collected. The SIMPLE IRA Forms are used by an employer to permit employees to make salary reduction contributions to a savings incentive match plan (SIMPLE IRA). Notice 98-4 provides guidance for employers and trustees regarding how they can comply with the requirements of establishing and maintaining a SIMPLE Plan.

The Small Business Job Protection Act of 1996 created SIMPLE IRAs to serve as simplified retirement plans for small employers. Congress specifically intended that this simplicity be achieved through the absence of complex rules associated with other types of retirement plans. Despite the statutory changes that have been made since 1996, the importance of simplicity is as strong as ever.

The SIMPLE IRA Forms and Notice 98-4 have not been updated since the passage of the SECURE 2.0 Act on December 29, 2022. Among the changes that affect SIMPLE IRAs, Section 601 of SECURE 2.0 allows an employee who participates in a SIMPLE or SEP IRA to designate a Roth IRA as the IRA to which contributions are to be made. The notice and SIMPLE IRA Forms should be updated to reflect the changes made by SECURE 2.0. The following recommendations are intended to provide the Service, taxpayers, and filers clearer guidance to foster compliance with the tax laws and to alleviate administrative burdens and uncertainties.

Notice 98-4 Must be Updated to Reflect Statutory Developments and to Simplify Complex Rules

Below, we explain several issues with the Notice, including ones that we have raised before, that must be addressed to reflect statutory developments (i.e., the Secure 2.0 Act) and Congress’s wish to simplify complex rules as much as possible.

1. i SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s one million employees, we advocate on legislation, regulation and business policy affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). [↩]
2. ii The Investment Company Institute (ICI) is the leading association representing the asset management industry in service of individual investors. ICI’s members include mutual funds, exchange-traded funds (ETFs), closed-end funds, and unit investment trusts (UITs) in the United States, and UCITS and similar funds offered to investors in other jurisdictions. Its members manage $40.5 trillion invested in funds registered under the US Investment Company Act of 1940, serving more than 120 million investors. Members manage an additional $9.5 trillion in regulated fund assets managed outside the United States. ICI also represents its members in their capacity as
   investment advisers to collective investment trusts (CITs) and retail separately managed accounts (SMAs). ICI has offices in Washington DC, Brussels, and London. [↩]
3. PenServ is a full-service retirement benefits company offering superior consulting and compliance services to employers and retirement benefits professionals. PenServ’s third-party administrative (TPA) and recordkeeping services provide point-to-point monitoring, security, and testing to ensure that every aspect of your retirement plan is legally compliant with federal regulations. [↩]