How Do You Set Up A Savings Incentive Match Plan For Employees (SIMPLE)?
A Savings Incentive Match Plan for Employees (SIMPLE) is an employer-sponsored investment plan that allows both the employer and employee to contribute to an employee’s future financial security. Determine whether you are eligible to participate in a SIMPLE. Sole proprietors, partnerships, corporations and tax-exempt organizations with 100 or fewer employees are eligible. To participate in a SIMPLE, however, you must terminate any other such retirement plans within your company. Decide whether your plan will be set up as an Individual Retirement Account (IRA) or a 401(k). Obtain either Form 5304-SIMPLE or FORM 5305-SIMPLE from your bank, brokerage house, mutual fund company or insurance agency. Complete and sign Form 5304-SIMPLE if the participants will be allowed to decide where the contributions are invested. Complete and sign FORM 5305-SIMPLE if you will decide where the contributions will be invested. Inform your employees of the SIMPLE once it is in place. Present all the provisio
