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A SIMPLE plan allows employee salary deferral contributions and requires either:

  • a matching contribution of 100% of the first 3% of compensation deferred or
  • an "across-the-board" contribution of 2% of employee's compensation, regardless of that employee's election to contribute to the plan.

If an employer sponsors a SIMPLE plan for a given calendar year, that is the only Retirement Plan the sponsor may have for that calendar year.

The employer contribution must be fully vested immediately and no other contributions may be made by the Sponsor.

Loans are not permitted.