Ally Invest rating

Best SIMPLE IRA Plan Provider in 2022

Top-rated broker for small business retirement investing. No-fee and low cost SIMPLE IRA plan provider.

Overview of Ally Invest's Small Business IRA

Small businesses that would like to help their employees save for retirement can set up a SIMPLE IRA at Ally Invest. The broker offers a lot of advantages for IRAs. Let's take a look at Ally Invest's retirement offerings and see how they compare to some of the firm's rivals.


A SIMPLE IRA is designed for businesses with fewer than 100 employees. Any company larger than this cannot open a SIMPLE plan under IRS regulations. In a SIMPLE IRA, the employer makes contributions, and the employee may or may not. The employer can match the employee's contribution up to 3% of salary, or contribute a flat 2%, which is not matched. In either case, the employer, but not the employee, is required to make contributions.

Employees must earn at least $5,000 in a year to contribute to a SIMPLE retirement plan. The contribution limit is $3,500 per year. Participants over the age of 50 can deposit up to $16,500 annually.

Opening a SIMPLE IRA at Ally Invest

To open a SIMPLE IRA with Ally Invest, you have to fill out a paper form and send it to the broker. Ally Invest will accept the document either through snail mail or via fax. You also have to create a username and password (check out their promotion offers: Up to $3,000 cash bonus + $0 trades + transfer fee rebate. ), then call the firm and link the SIMPLE account to the username. The broker instructs applicants to click on "Continue' on its application page, but then stop the application process after doing so.

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Fees, Commission, and Account Requirements

The broker's regular commission schedule applies to SIMPLE IRAs. Stock and ETF trades cost $0. Options are just 50ยข extra, another industry low. Using a live representative over the phone for assistance in placing a trade costs $20.

Retirement accounts at Ally Invest come with no annual or inactivity fees. There is no charge to establish a SIMPLE IRA.

The broker does charge $25 for closing an IRA. Transferring a whole or part of an account to another firm costs $50. Since an Ally Invest IRA has a $25 termination charge, transferring an entire IRA actually costs $75: $25 for the closure of the account and $50 for the transfer.


Up to $3,000 cash bonus + commission free trades for new accounts.

IRA Resources and Educational Materials

The Ally Invest website has resources for investment education. These include articles and videos on a wide range of topics that will be of interest to retirement savers. One on-demand webinar is for new clients. It is over an hour long. A lengthy article discusses the advantages of index mutual funds. Resources can be sorted by experience level or by security type.

Live events are also hosted periodically. A calendar on Ally Invest's website lists live upcoming educational events with registration instructions. A list of recommended investment books also appears on the broker's website.

Mutual Funds and ETFs

The Ally Invest mutual fund screener returns 10,000+ products that are open to new investors. The firm does not offer any funds that have both no load and no transaction fee. Instead, every load fund at Ally Invest is free to trade, while every no-load fund is $9.95. This transaction fee is applied to sales, purchases, and exchanges. Some of the funds available from Ally Invest are target-date funds, which are designed for retirement savers.

Fixed-income Selection

There is a good fixed-income assortment at Ally Invest. These assets tend to be stable in value and pay a regular stream of income. As such, they might be a good investment for people in or near retirement.

Bonds cost $1 each at Ally Invest, with a $10 minimum and a $250 maximum. U.S. Treasury bonds have no transaction fee, although there is a markup or markdown in their prices. These adjustments compensate the broker. Certificates of deposit can also be purchased in an Ally Invest SIMPLE IRA. They cost $24.95 per transaction.

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Best SIMPLE IRA Plan Recap

Many consider Ally Invest's SIMPLE IRA plan to be the best value because of low fees and commissions. It works especially well for beginner and long term buy-and-hold investors.

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Up to $3,000 cash bonus + commission free trades for new accounts.

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