SIMPLE Plans as Benefits

Employers with no more than 100 employees may set up a savings incentive match plan for employee (SIMPLE). In effect, SIMPLE plans trade off lower annual contribution limits for ease of administration. Thus, they're generally cheaper and easier to operate than other retirement options, but you can't save as much for retirement each year as you can with the other options.

Here are the basic rules:

One of the more interesting aspects of SIMPLE plans is that, although you must offer the plan to all eligible employees, you can still set up the plan even if none of your employees wants to participate. That is not true of other plans. Of course, there are strict rules and heavy fines for business owners who don't properly give employees the option of joining.

If you're interested in setting up a SIMPLE plan, contact anyone who might offer IRAs or 401(k) plans, such as banks, insurance companies, or investment houses.