Institute Releases Ad Hoc Survey on SIMPLE IRAs as of June 30, 2001

Washington, DC, September 28, 2001 - The Institute recently surveyed certain of its members in a continuing effort to track developments in the SIMPLE IRA market. (An earlier survey covered the last six months of 2000). The Institute's survey requested SIMPLE IRA data on the number of plans, number of plan participants, and value of the assets as of December 31, 2000 and June 30, 2001.

Survey respondents indicate that the number of SIMPLE IRA plans rose 11 percent and the number of participants increased 15 percent between December 31, 2000 and June 30, 2001. SIMPLE IRA assets invested in mutual funds were up 12 percent during the first half of 2001. During the first half of 2000, by comparison , the number of SIMPLE IRA plans rose 17 percent, the number of participants increased 21 percent, and SIMPLE IRA assets invested in mutual funds were up 35 percent. During 2000 as a whole, data indicate the number of SIMPLE IRA plans increased 34 percent, the number of participants rose 36 percent, and assets increased about 47 percent.

In addition, it appears SIMPLE IRAs continue to be most popular among very small businesses, with most SIMPLE IRA plans having 10 or fewer participants.

Survey respondents were not randomly selected, and therefore the results do not necessarily reflect the characteristics of the typical SIMPLE IRA account invested in mutual funds. Survey results represent an estimated 70 percent of the $8 billion SIMPLE IRA assets invested in mutual funds at year-end 2000.