SIMPLE

(redirected from simpleton)
Also found in: Dictionary, Thesaurus, Medical, Legal, 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

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.
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.

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%.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
The cage-fighting simpleton's toughest fight now is to get his soon-to-be-exmissus to part with some cash in a divorce settlement.
Or, to be in with a chance of winning a pair of weekend tickets, just email ultimateulster@mirror.co.uk with your answer to this simpleton question: AT WHICH ('MASSIVE' BELFAST PARK) VENUE DID FATBOY SLIM PLAY EARLIER THIS YEAR?
The TV presenter was comparing two Ferrari cars when he said the older one looked like a "simpleton".
Or if you're feeling inspired, send your contact details along with your answer to this simpleton question to ultimateulster@mirror.co.uk for your chance of winning a pair.
And research for the part of simpleton Lucy is taking Charlotte to some dark places.
Suppandi, who was presented as a well-meaning village simpleton inadvertently caught up in everyday adventures, was one of her favourite characters.
Also competent is Strike, an English actor in his 20s, intriguing enough as a handsome and noble simpleton who transforms into the scarred and extremely violent grotesquery.
A luxury hotel meal would cost 10 times the cost of a meal in a local simpleton hotel.
Asked if her upcoming Chambal will break her from the"simpleton" mould, Bhumi said,"I have never really chased 'breaking that mould'...
If the figures published, relating to attendance and costs, were as shown, even a simpleton like me can see that there should be no question of cancelling the event but, without doubt, there should be a minimum PS10 entrance fee.
Emmerdale STV It takes a lot for sweet-natured simpleton Sam Dingle to lose his temper - but Jai is just about evil enough to incur his wrath.
It takes a lot for sweet-natured simpleton Sam Dingle to lose his temper, but Jai Sharma is just about evil enough to incur his wrath.