Employee contribution
Employees can defer up to $6,000 per year into their SIMPLE account.

Employee eligibility
Employees are eligible to participate in SIMPLE if they are expected to earn $5,000 in the calendar year and have earned a minimum of $5,000 in any two preceding years.

Employer matching contribution
The amount that the employer contributes to the employee's SIMPLE-IRA account.

SIMPLE
Stands for Savings Incentive Match Plan for Employees. SIMPLE-IRAs are available to companies with no more than 100 employees who offer no other type of retirement plan.

Vesting
The period of time an employee must work at a firm before gaining access to employer-contributed pension income. For SIMPLE-IRAs, employer contributions are immediately vested.