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


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%.

References in periodicals archive ?
Nothingness plays a vital role as a limiting concept in the simplicity way of thinking.
Citi Simplicity was first introduced in the United States in 2011 and is now being introduced in markets globally.
The Simplicity BodyChoice stationary massage table has a beech hardwood frame in a natural finish.
It makes a case for the ideas of plainness and simplicity of form and may well be taken as a call for a new school of seeing that does not foreground opulent materials and abundant decoration, but perfection in plain and simple shapes," explained MAK director Christoph Thun-Hohenstein.
The Simplicity Project will include blogger diaries, weekly giveaways of Pollack's favorite products for simplification, and the Simplicity Sweepstakes.
News-related media including print, online, broadcast and mobile outlets also hold a prominent place in the Global Brand Simplicity Index, finishing in the second spot on the industry list.
He explains that the layout of the first part of the Summa Theologiae shows that Aquinas granted pride of place to simplicity as the 'the ontological precondition' for all other divine predicates (37).
The products in question were manufactured and distributed by Simplicity Inc.
Simplicity is willful limitation, choosing "one thing" so that life is not distracted, worried or bothered with "many things.
introduced a product named Simplicity to serve as an alternative to its Golden Select product set, which offers a full menu of options.
Radical Simplicity, the bike that won the 57th annual Grand National Roadster Show's top motorcycle honor, is the work of MGS Custom Bikes, which started in Mike and Paula Stafford's garage and now turns out custom bikes getting notice around the country.