SIMPLE


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.

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 ?
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.
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.
I suppose they--the flights and flourishes--are desirable, and I regret not being able to supply them; but at the same time I cannot help thinking that simple things are always the most impressive, and that books are easier to understand when they are written in plain language, though perhaps I have no right to set up an opinion on such a matter.
She knew that Sonya with her severe and simple views would either not understand it at all or would be horrified at such a confession.
It was a very simple device, but perfectly effective, as I think any one will find who employs it in like circumstances; and I would really like to commend it to growing boys troubled as I was then.
The story of the Odyssey, abbreviated [13] in very simple prose, for children--of all ages--will speak for itself.
He sang of the simplest things, of the common happenings of everyday life, and that too a simple life.
Yet the existing ballads yielded slowly, lingering on in the remote regions, and those which have been preserved were recovered during the eighteenth and nineteenth centuries by collectors from simple men and women living apart from the main currents of life, to whose hearts and lips they were still dear.
Whereas the simple and moderate desires which follow reason, and are under the guidance of mind and true opinion, are to be found only in a few, and those the best born and best educated.
You must know that, just outside the City of Simple Simons, there is a blessed field called the Field of Wonders.
And the individual, in whom simple tastes and susceptibility to all the great human influences overpower the accidents of a local and special culture, is the best critic of art.