What's the Difference Between a SIMPLE IRA and a SIMPLE 401(k)?
If you're the owner or employee of a small business, you might have heard of a SIMPLE IRA or a SIMPLE 401(k). The two retirement accounts are similar, but there are some key differences between them. It's crucial for business owners to understand them to choose the right type of account for their employees.
As an employee, you might not have any control over the plan your company uses, but it still helps to understand how yours works so you know what to expect. Here's a brief guide to both types of accounts.
SIMPLE stands for Savings Incentive Match Plan for Employees, but it's usually referred to by its acronym. These are retirement savings accounts aimed at small businesses that may find it cost-prohibitive to establish a traditional 401(k) for employees.
Source Fool.com
