SIMPLE

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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.

SIMPLE

A savings incentive match plan for employees that is similar to but more flexible than an IRA for businesses with 100 or fewer employees. Employees enter into a qualified salary reduction agreement to contribute a percentage of their annual compensation to a tax-deferred retirement account.

SIMPLE.

A SIMPLE, also known as a SIMPLE IRA, is short for Savings Incentive Match Plans for Employees, an employer sponsored retirement savings plan that may be offered by companies with fewer than 100 employees.

Employers must contribute to eligible employees' accounts each year in one of two ways. They can make a contribution equal to 2% of salary for every employee, or match dollar-for-dollar each employee's contribution to the plan, up to 3% of that employee's annual salary.

A SIMPLE may be set up by establishing an IRA in each employee's name or as a 401(k). Congress sets an annual dollar limit on the tax-deferred amount an employee may contribute, based on the type of SIMPLE it is. Contribution ceilings for SIMPLE-IRAs are lower than for other employer sponsored plans.

You may withdraw assets from a SIMPLE without penalty if you are 59 1/2 or older and retired. And you must begin taking minimum required distributions by April 1 of the year following the year you turn 70 1/2 unless you're still working. Taxes are due on distributions at your regular tax rate.

You may roll your assets over into another employer plan or an IRA if you leave your job for any reason or retire.

Two key differences between SIMPLEs and other employer plans are that your account must be open at least two years before you can withdraw or move the money, and the federal tax penalty for early withdrawal is 25% of the amount you take, rather than 10%.

References in classic literature ?
From amongst these vegetables he selected the most simple -- a cabbage, for instance.
As this simple and yet terrible annunciation stole on the ears of the multitude, a stillness as deep and awful succeeded as if the venerated spirit they worshiped had uttered the words without the aid of human organs; and even the inanimate Uncas appeared a being of life, compared with the humbled and submissive throng by whom he was surrounded.
Saying these words, she had tied and buttoned on the child's simple outfit, and, taking him in her arms, she whispered to him to be very still; and, opening a door in her room which led into the outer verandah, she glided noiselessly out.
Nor were poets and romancers from over sea--in their seeming simple paper covers, but with, oh, such complicated and subtle insides
The question then may be put into this simple form: does the period of two years bear no greater proportion to the knowledge requisite for federal legislation than one year does to the knowledge requisite for State legislation?
He went to while away the next three hours as he could, with his other acquaintance, till the best dinner that a capital inn afforded was ready for their enjoyment, and she turned in to her more simple one immediately.
Athos was dressed in black, with a simple lacing of silver.
Then after relieving me of my hat and coat she announced me with the simple words: "Voile Monsieur," and hurried away.
So with the world thy gentle ways, Thy grace, thy more than beauty, Shall be an endless theme of praise, And love - a simple duty.
Imagination has been verified by fact; the King Solomon's Mines I dreamed of have been discovered, and are putting out their gold once more, and, according to the latest reports, their diamonds also; the Kukuanas or, rather, the Matabele, have been tamed by the white man's bullets, but still there seem to be many who find pleasure in these simple pages.
Kuragin was much more sensible and simple with women than among men.
With certain obvious lapses in its art, and with an art that is at its best very simple, and perhaps primitive, the book is still a work of art.