Practical Law Glossary Item w-001-8296 (Approx. 2 pages)
Glossary
Savings Incentive Match Plan for Employees 401(k) Plans (SIMPLE 401(k) Plans)
A retirement plan for small business owners that allows an employee to make salary reduction contributions and the employer must make either matching or nonelective contributions. Taxation is deferred until distribution. SIMPLE 401(k) plans are generally required to meet the qualified plan requirements.