Simple IRA


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Simple IRA

A salary deduction plan for retirement benefits provided by some small companies with no more than 100 employees.

Savings Incentive Match Plan for Employees of Small Employers

An IRA or 401(k) plan for employees of small businesses, usually with fewer than 100 employees. The employee may make tax deductible contributions, and the employer may contribute in one of two ways. The employer may either match employee contributions up to 3% of the employee's annual salary, or provide a contribution of 2% of the salary regardless of how much the employee contributes. The employee controls the investment of the contributions.
References in periodicals archive ?
Your main options are the SEP IRA, the SIMPLE IRA and the solo 401(k) plan, which allow you to deduct your contributions, let your earnings grow tax-deferred and get taxed on withdrawals in retirement.
It appears that a rollover from a SEP or SIMPLE IRA would receive only $1 million of protection, since a Sec.
7 million taxpayers contributed to a SIMPLE IRA (Table 1).
She has a $50,000 balance in a traditional IRA, of which $27,000 represents nondeductible contributions; a $20,000 balance in a SEP-IRA, none of which represents nondeductible contributions; a $10,000 balance in a SIMPLE IRA, none of which represents nondeductible contributions (assume she has been a participant for more than two years); and a $100,000 balance in a Sec.
The "IRA Online Institute" is a 12-week course developed and supported by Ascensus' professional instructors that teaches essential information on Traditional IRAs, Roth IRAs, SEP plans, and SIMPLE IRA plans.
Most of the plans available to small businesses--simplified employee pensions (SEPs), salary reduction simplified employee pensions, SIMPLE IRA plans, SIMPLE 401(k) plans, regular 401(k)s, profit-sharing plans, money purchase pension plan, Keogh plans, defined benefit plans, defined contribution plans, and employee stock ownership plans--are subject to the minimum coverage requirements, minimum vesting standards, the actual deferral percentage test, the non-discrimination requirements, and the top heavy plan requirements.
Individuals covered by a Keogh, SEP or SIMPLE IRA also qualify for Roth contributions.
After 2009, any type of IRA can be converted to a Roth, including traditional deductible, nondeductible, or rollover inherited IRA, a SEP, or a SIMPLE IRA.
With a SIMPLE IRA employees make salary deferrals that are matched up to a certain percentage by their employer.
Our SIMPLE IRA is a great benefit for our employees," says Dave Lake, CFO of Hook & Ladder Brewery, which has 25 employees and is based in Silver Spring, MD.
The video portrays real-life experiences of four small employers who operate Simplified Employee Pension (SEP), SIMPLE IRA and 401(k) plans.