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savings incentive match plan for employees of small employers

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Financial Dictionary

Savings Incentive Match Plan for Employees of Small Employers - SIMPLE

A retirement plan that may be established by employers, including self-employed individuals. The employer is allowed a tax deduction for contributions made to the SIMPLE. The employer makes either matching or non-elective contributions to each eligible employee's SIMPLE IRA and employees may make salary deferral contributions.

Investopedia Commentary

Contributions to SIMPLE IRAs are immediately 100% vested, and the IRA owner directs the investments.

Related Links

Introductory Tour through Retirement Plans
Plans the Small Employer Can Establish
Introduction To SIMPLE 401(k) Plans
SIMPLE IRA Vs SIMPLE 401(k) Plans

See also: IRA, Roth IRA, SEP, Traditional IRA

Also spelled: SIMPLE

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