Institute Releases Ad Hoc Survey on SIMPLE IRAs as of June 30, 2002

Washington, DC, September 26, 2002 - 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 2001.) 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, 2001 and June 30, 2002.

Survey respondents indicate that, between December 31, 2001 and June 30, 2002, the number of SIMPLE IRA plans rose 7 percent, the number of participants increased 9 percent, and SIMPLE IRA assets invested in mutual funds were up 7 percent. By comparison, over the first half of 2001, the number of SIMPLE IRA plans rose 11 percent, the number of participants increased 16 percent, and SIMPLE IRA assets invested in mutual funds were up 14 percent.

Over 2001 as a whole, the number of SIMPLE IRA plans increased 21 percent, the number of participants rose 24 percent, and SIMPLE IRA assets invested in mutual funds increased about 38 percent.

Based on the survey results, the SIMPLE IRA continues to be most popular among very small employers. Most SIMPLE IRA plans have 10 or fewer participants. Survey results are based on the responses of 25 firms, representing an estimated 73 percent of the $11 billion of SIMPLE IRA assets invested in mutual funds at year-end 2001.

Survey respondents are not randomly selected and therefore do not necessarily reflect the characteristics of the typical SIMPLE IRA account invested in mutual funds.