Journal article
SIMPLE plans for small business
Management accounting (New York, N.Y.), Vol.78(7)
01 Jan 1997
Abstract
The Savings and Incentive Match Plan for Employees (SIMPLE) was introduced in response to the complexity and steep cost of rules covering qualified retirement plans. Starting in 1997, employers with 100 or fewer employees can offer the SIMPLE plan, which can take the form of either an individual retirement account or a 401(k). The plan must meet three requirements, the first of which is that it is offered to all employees who have been paid a minimum of $5,000 as compensation from the employer during any two previous years and are predicted to make a minimum of $5,000 during the current year. Leased employees and self-employed people may also participate. The second requirement is that contributions to the SIMPLE account of an employee should be fully vested. Finally, the contribution must be defined as a percentage of compensation and the employer must choose a plan that offers an elective contribution or a 2% non-elective contribution.
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Details
- Title
- SIMPLE plans for small business
- Creators
- Anthony P Curatola
- Publication Details
- Management accounting (New York, N.Y.), Vol.78(7)
- Publisher
- Institute of Management Accountants
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Accounting
- Identifiers
- 991020531849604721