Source: http://www.retirementdictionary.com/definitions/simpleira
Timestamp: 2019-04-25 04:55:21+00:00

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An IRA based retirement savings vehicle, established by a small business owner for it’s employees. Earnings accrue on a tax-deferred basis and distributions are treated as ordinary income to the participant.
Rollover contributions and transfers can also be made to a SIMPLE IRA, providing the assets were distributed or transferred from another SIMPLE IRA.
Employers are able to deduct employer-contributions to the SIMPLE IRA plan, providing the contributions are within statutory limits.
Compensation definition: Compensation means with respect to an Employee the sum of the wages, tips, and other compensation from the Employer subject to federal income tax withholding (as described in § 6051(a)(3) of the Code) and the Employee's salary reduction contributions made under this plan, and, if applicable, elective deferrals on behalf of the Employee under a § 401(k) plan, a SARSEP, a § 403(b) annuity contract and compensation from the Employer deferred under a § 457 plan required to be reported by the Employer on Form W-2 (as described under § 6051(a)(8)). ; Compensation also includes amounts paid for domestic service (as described in § 3401(a)(3). Compensation does not include any amounts deferred by the Employee pursuant to a § 125 cafeteria plan. For a self-employed individual, Compensation means the net earnings from self-employment with respect to the Employer determined under § 1402(a) of the Code, without regard to § 1402(c)(6), prior to subtracting any contributions made pursuant to this plan on behalf of the individual.

References: § 6051
 § 401
 § 403
 § 457
 § 6051
 § 3401
 § 125
 § 1402
 § 1402