Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Idioms, Encyclopedia, Wikipedia.
Related to SIMPLE: simple sentence

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


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%.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
'People living in remote countryside as well as in urban areas preferred simple dishes free from cholesterols but unhealthy life style has brought about drastic changes in their attitude,' said Dr Fasihuddin Zarif.
For what else would you call the simple yet effective arrest of PMLN's Rana Sanaullah?
With a SIMPLE IRA, employers must make certain contributions to employees' accounts.
Among the 203 cases of simple nephrectomy, the male-to-female ratio was 2.27:1 with 141(69.5%) males and 62(30.5%) females.
There are three reasons why simple rules help us overcome complexity.
Train Simple users can continue to access their courses through the Train Simple site or a link on the Pluralsight homepage.
Carbohydrates are complex sugar molecules composed of two to 10 simple sugar molecules.
"Quantification of the risk of malignancy based on the Simple Rules has good diagnostic performance both in oncology centers and other centers.
ARGX-111 is a SIMPLE Antibody targeting c-Met, a receptor involved in cancer spread (metastasis) in both solid and hematological tumors.
This book provides a far simpler format to impart the message to a younger age group, offering reader-friendly, simple drawings paired with uncomplicated admonitions that encourage kids to recognize how love powers the planet.
21 February 2014 -- Spanish financial services group BBVA said it has agreed to acquire US-based digital banking specialist Simple.