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 ?
And I had little difficulty in determining the objects with which it was necessary to commence, for I was already persuaded that it must be with the simplest and easiest to know, and, considering that of all those who have hitherto sought truth in the sciences, the mathematicians alone have been able to find any demonstrations, that is, any certain and evident reasons, I did not doubt but that such must have been the rule of their investigations.
To be sure we will," replied Aramis and Porthos, with admirable promptness and decision, as if that were the simplest thing in the world, "to be sure we will get you out; but meantime, as we are to set off the day after tomorrow, you would do much better not to risk this Bastille.
Go straight to his box; that will be the simplest plan.
The simplest words must intimate, but not portray, the unutterable horror of the catastrophe.
The simplest things became the first apparent, and others followed by a species of magnetic induction, which I cannot now stop to explain.
I know Adam Bede well--I know what he is as a workman, and what he has been as a son and brother--and I am saying the simplest truth when I say that I respect him as much as I respect any man living.
More obvious, more prominent, shone on by the full light of the large window, were the occupants of the benches just before me, of whom some were girls of fourteen, fifteen, sixteen, some young women from eighteen (as it appeared to me) up to twenty; the most modest attire, the simplest fashion of wearing the hair, were apparent in all; and good features, ruddy, blooming complexions, large and brilliant eyes, forms full, even to solidity, seemed to abound.
This circumstance, however, only endeared it to my wife, who, as I have already said, possessed, in a high degree, that humanity of feeling which had once been my distinguishing trait, and the source of many of my simplest and purest pleasures.
But be assured that the specimen before us appertains to the very simplest species of cryptograph.
He sang of the simplest things, of the common happenings of everyday life, and that too a simple life.
The reference of all production at last to an aboriginal Power explains the traits common to all works of the highest art,--that they are universally intelligible; that they restore to us the simplest states of mind, and are religious.
The simplest of them seeing "The Wiltshire House," written under a sign, advised his companions to enter it, for there most probably they would find their countryman.