Agent Owner, Gilmore Insurance Services, Marysville, Washington State
what does Simple retirement plan mean? It means that someone is using a boilerplate retirement plan created by the IRS to provide a retirement program for a small business. I love Simples as their name says it all. A Simple is a straight forward plan design with only a few requirements to comply with to have the plan. The best part for a small business owner is it costs next to nothing to provide. There is no testing of the plan which costs money. Just a nominal per head fee of active participants. The employer doesn't pay fees for testing employees and accounting for employees who aren't in the plan.
For a small business a Simple is a great choice for putting a retirement plan together for employees.
If the question is referring to some “simple retirement” plan, it could mean anything. But if you’re referring to a SIMPLE IRA, that’s another matter. Savings Incentive Match Plan for Employees Individual Retirement Account a tax-deferred employer-provided retirement plan that permits employees to set aside money and invest it to grow for retirement, but offers simpler and less costly administration as a non ERISA plan.
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For a small business a Simple is a great choice for putting a retirement plan together for employees.