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 ?
God help them," said the curate; "and let us be on the look-out to see what comes of all these absurdities of the knight and squire, for it seems as if they had both been cast in the same mould, and the madness of the master without the simplicity of the man would not be worth a farthing.
But, taking an habitual breadth of view, with all his simplicity, he contended that providence should choose its own method of blessing mankind, and could conceive that this great end might be effected even by a warrior and a bloody sword, should inscrutable wisdom see fit to order matters SO.
GENERAL INFORMATION GATHERED AT THE FESTIVAL--PERSONAL BEAUTY OF THE TYPEES--THEIR SUPERIORITY OVER THE INHABITANTS OF THE OTHER ISLANDS--DIVERSITY OF COMPLEXION--A VEGETABLE COSMETIC AND OINTMENT--TESTIMONY OF VOYAGERS TO THE UNCOMMON BEAUTY OF THE MARQUESANS--FEW EVIDENCES OF INTERCOURSE WITH CIVILIZED BEINGS--DILAPIDATED MUSKET--PRIMITIVE SIMPLICITY OF GOVERNMENT-- REGAL DIGNITY OF MEHEVI
It requires great powers, great nicety, to give her playfulness and simplicity without extravagance.
While we smile at the simplicity of his heart and the narrowness of his views, which made him regard everything out of the direct path of his daily duty, and the rigid exigencies of the service, as trivial and impertinent, which inspired him with contempt for the swelling vanity of some of his coadjutors, and the literary exercises and curious researches of others, we cannot but applaud that strict and conscientious devotion to the interests of his employer, and to what he considered the true objects of the enterprise in which he was engaged.
The human, as apart from the scientific, side (developed in his own volumes) of his epoch-making discoveries is marked with a simplicity, clarity, and good sense beyond praise.
Archer with cousinly affability, proffered to Newland low-voiced congratulations couched in the same language as his wife's, and seated himself in one of the brocade armchairs with the simplicity of a reigning sovereign.
He and his wife made a picture which the imagination gratefully dwelt upon, and the simplicity of his love for her had a deliberate grace.
The director of her conscience was astounded at having the case presented to him thus with the simplicity of Columbus' egg.
I do not know that I should counsel others to do so, or that the general reader would find his account in it, but I am sure that the intending author of American fiction would do well to study the Spanish picaresque novels; for in their simplicity of design he will find one of the best forms for an American story.
For six months she saved her egg-money, which was hers by right of allotment, and on his birthday presented him with a turning-lathe of wonderful simplicity and multifarious efficiencies.
Perceiving their simplicity, he cast down a huge log into the lake.