(redirected from simpler)
Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Idioms, Encyclopedia, Wikipedia.

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 ?
Our reforms are the blueprint for the simpler and fairer energy market that consumers deserve
"The past was simpler, more natural, the country was really full of green countryside, healthy, nice beaches, hotels, everything," he said.
The new local societies can only be made to work by the willing effort of local people who understand why The Simpler Way is necessary and who want to live that way and who find it rewarding.
A "simpler" XBRL doesn't enable the process changes and the increased efficiencies in the creation of end reports that the XBRL Specification is designed to achieve, including automation of manual processes, a consistent view of data residing in disparate systems, the elimination of spreadsheet proliferation and their requalification as user interfaces rather than unmanaged storage facilities for data and business rules, support for the internal and external auditing processes, and the seamless audit trail.
The key to a better tomorrow is not as complicated as one would think, but in fact, fare simpler. "Treading Lightly: The Joy of Conservation, Moderation, and Simple Living" is a call to solving the world's energy and environmental issues by simply living a simpler and more Earth-friendly life.
Train company chiefs yesterday promised passengers an easier ride when the second stage of a simpler fares system takes effect next month.
A simpler procedure is to have Botox injections which switch off the nerves that innervate the sweat glands.
This made up word was based on the bank's promise of providing better, simpler and easier banking to its customers--services such as seven-day-a-week banking, longer hours, the addition of more ATMs, 24-hour online banking and free checking.
A simpler system could encourage earlier awareness and planning for college, as students and parents would have a better idea about how much aid they are likely to receive to help pay for college.
Fourth, the Tax System Must Be Simpler. Clearly, it's not rocket science to say that the tax law is too complex, that complexity is expensive to deal with and, moreover, that complexity can both lead to noncompliance and spawn unintended consequences.
We established the business two seasons ago with five core values that must ring true in all that we do: 1.) Kinder, simpler and easier to do business with; 2.) Support customers to grow with us; 3.) Support our customers' business needs; 4.) To be trusted as a long-term technology partner; 5.) Position traits and germplasm as quickly and aggressively as possible.