<https://benefitslink.com/boards/topic/64577-multiple-simple-vendors/#comment-295172>
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"There are 2 flavors of SIMPLE IRAs, those using a \"Designated Financial Institution\" or DFI (see IRS Form 5305-SIMPLE) and those not using a DFI (see IRS Form 5304-SIMPLE).\n \n\n\n\tWhen the financial institution  (ML in your example) agrees to be a DFI then the employer can require that all contributions must go to ML SIMPLE IRA accounts which obviously avoids the hassle of the having to send contributions to multiple institutions.\n \n\n\n\tHowever, when the investment institution won't agree to be the DFI (most won't accept the extra obligations imposed on DFIs) then the employees have the absolute right to open their SIMPLE IRA investment account anywhere they want. This \"right\" is never mentioned during the enrollment process and as a practical matter the EEs are led to believe that if they want to participate they must open their accounts with the advisor doing the enrollment.\n \n\n\n\tEven where a DFI exists and all contributions initially go into the accounts with the DFI the EEs also have the right to transfer the amounts to a different SIMPLE IRA at any time and \"without any cost or penalty to the participant\". \n \n"
<https://benefitslink.com/boards/topic/64577-multiple-simple-vendors/>