What is ‘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.
Explaining ‘Savings Incentive Match Plan For Employees Of Small Employers – SIMPLE’
The employer has two alternatives when it comes to making contributions. The first is to match the amounts that each employee makes toward his or her own elective-deferral contribution up to 3% of the employee’s annual compensation. The second alternative is for the employer to make a flat 2% nonelective contribution to all qualified employees, regardless of whether the employee makes any contributions.
Further Reading
- Household saving behavior: The role of financial literacy, information, and financial education programs – www.nber.org [PDF]
- Financial illiteracy, education and retirement saving – books.google.com [PDF]
- SIMPLE Retirement Plans – www.questia.com [PDF]
- Financial literacy and retirement preparedness: Evidence and implications for financial education – link.springer.com [PDF]
- Why Not a'Super Simple'Saving Plan for the United States? – papers.ssrn.com [PDF]
- Heuristics and biases in retirement savings behavior – www.aeaweb.org [PDF]
- Lessons from behavioral finance for retirement plan design – books.google.com [PDF]
- Financial literacy: an essential tool for informed consumer choice? – www.nber.org [PDF]
- Household saving behavior: the role of literacy, information and financial education programs – www.econstor.eu [PDF]
