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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.


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.


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%.

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commented, "Two of our larger corporate clients have recently deployed Simplify ProfilesO resulting in a drastic reduction in login times and a huge improvement in internal customer satisfaction.
David Hovda, CEO of Simplify Medical, said, "We have worked collaboratively with the FDA to achieve IDE approval, and we look forward to starting our study later this year.
Flat income tax--This system would greatly simplify filing for individuals and businesses.
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a leader in enterprise software for remote environments, announced today the release of Simplify Printing Bundle v4.
Echoing the words of Henry David Thoreau, it's time to "simplify, simplify, simplify" in the world of data storage.
The procedures also include special provisions to simplify and hasten APA negotiations for SBTs.
Home Concierge is an online lifestyle management tool that organizes and manages a homeowner's property and activities from a secure, personalized Website, giving a homeowner access to their information anytime and from anywhere to simplify their life.
Now that we have reached this milestone, we are able to offer customers the most secure and compliant next-generation mortgage settlement services platform that is integrated with the nation's top vendors and also allows our customers to simplify their due diligence obligations.
States will also be encouraged to simplify their state and local tax rates and be responsible for providing accurate information permitting retailers to match addresses within the state to the appropriate local tax rate.
The ability of a taxpayer to simplify and correct the UNICAP calculation on a forward basis, and to be relieved of the yearly burden of calculating the absorptio ratio, may outweigh some of the other related issues.
ROUND ROCK, Texas -- Dell (NASDAQ:DELL) today announced a series of moves to drive industry standards further into systems management architectures, resulting in new capabilities that can simplify and automate the administration of IT resources in the enterprise.