What is SIMPLE or Savings Incentive Match Plan for Employees?
The Bankrate.com financial term of the day is: "Savings Incentive Match Plan for Employees."
Do you work for yourself or own a small business and are looking for a good retirement plan for you and your workers? The answer may be SIMPLE -- which in this case is an acronym that stands for Savings Incentive Match Plan for Employees. It's a company-sponsored individual retirement account for small businesses with no more than 100 employees; the workers must be earning at least $5,000 a year. The employer is required to make certain contributions to help employees build up their SIMPLE IRAs.
A Savings Incentive Match Plan for Employees, or SIMPLE, is a retirement savings solution for the self-employed or small businesses.
For answers to all of your retirement questions, visit the Retirement section at Bankrate.com.