Life · Chapter 11 · Small Employer Plans
SIMPLE Plan
Definition
Savings Incentive Match Plan for Employees — for small employers with no more than 100 employees (who earned ≥ $5,000 last year) and NO other qualified plan in place. Structured as an IRA or a 401(k). All contributions are immediately 100% vested (nonforfeitable); tax-deferred growth; catch-up contributions at 50+; minimal filing burden.
Exam tip
The three SIMPLE tells: ≤100 employees · no other qualified plan allowed · immediate full vesting.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
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