Business A to Z

SIMPLE IRA


Savings Investment Match Plan for Employees for companies with up to 100 employees. Allows workers to put aside up to $10,000 (as of 2005) per year; their employers can choose to match contributions dollar for dollar up to 3 percent of the worker's pay, or make an across-the-board contribution of 2 percent to each eligible worker. Employers can choose which option they prefer on a yearly basis.

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