The SIMPLE Plan is a type of retirement account for small businesses that is simpler (ah hah!) to administer and more portable than the 401(k) plans that are more appopriate for larger businesses. SIMPLE is an acronym (probably a backronym, more likely) which stands for Savings Incentive Match PLan for Employees.
A SIMPLE typically is based on an IRA-type account, but could be based on a 401(k) plan. What we’ll cover here is the IRA-type of SIMPLE plan. The difference (with the 401(k)-type) is that there are more restrictions on employer activities, and less room for error (as can be …Read More