SIMPLE. A retirement plan sponsored by companies with fewer than 100 employees...
A tax-deferred retirement savings plan similar to a conventional 401(k) plan, but redesigned with specific rules to meet the needs of small-scale employers.
A type of defined contribution plan for employers with 100 or fewer employees in which the employer matches employee deferrals up to 3 percent of compensation or provides non-elective contributions up to 2 percent of compensation. These contributions are immediately and 100 percent vested, and they are the only employer contribution to the plan. SIMPLE plans may be structured as individual retirement accounts (IRAs) or as 401(k) plans.
A simplified retirement plan, structured either as a 401(k) or as an IRA, that allows employees to make elective contributions, while requiring certain matching or nonelective contributions from the sponsoring employer. The specified rate of employer contributions obviates the requirement to perform the ADP/ACP nondiscrimination tests.
A simplified retirement arrangement for small businesses that comes in two varieties: one similar to a 401(k) plan and one that funds IRAs for employees.
In the United States, a qualified retirement plan that may be established by small employers with 100 or fewer employees. (1) According to the terms of a SIMPLE individual retirement account (IRA), both the employer and employee can make tax-deductible contributions, up to a specified maximum, to an IRA that the employer has established for the employee. All earnings accumulate on a tax-deferred basis. (2) According to the terms of a SIMPLE 401(k) plan, both the employer and the employee can make contributions to the 401(k) plan up to a specified maximum. Employer contributions to the plan are deductible from the employer's current taxable income, employee contributions are on a pre-tax basis, and all earned income accumulates on a tax-deferred basis.
SIMPLE summary plan description