Investor Glossary-salary reduction simplified employee pension planInvestor Glossary-salary reduction simplified employee pension planInvestor Glossary-salary reduction simplified employee pension planInvestor Glossary-salary reduction simplified employee pension planInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Salary Reduction Simplified Employee Pension Plan

The HTML to link to this page
 

A salary reduction simplified employee pension plan was an investment vehicle created for businesses with fewer than 25 employees. Self-employed people could also establish and maintain a salary reduction simplified employee pension plan. Under a salary reduction simplified employee pension plan, an employer could deduct a portion of an employee's salary and deposit it into an IRA. Employees chose whether and to what extent they would take part in a salary reduction simplified employee pension plan. Employee contributions to the salary reduction simplified employee pension plan were referred to as an "employee elective deferral" or a "salary reduction contribution." Contributions to a salary reduction simplified employee pension plan were made only to a traditional IRA. The salary reduction simplified employee pension plan format has since been replaced by the "SIMPLE" plan, which was created by the Small Business Job Protection Act of 1996. However, a grandfather clause allowed businesses with an established salary reduction simplified employee pension plan to keep their plans.



Rate this Salary Reduction Simplified Employee Pension Plan definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: average price per share, annual return, 144a, dividends payable, diluted share, 1031 exchange, APR, retained earnings, open position, 401a, 1035 exchange, irrevocable trust, labor relations, stock split, covered put, deferred revenue, liquidity ratio, LIBOR, margin rate, current ratio, per diem, implied volatility, required rate of return, minority interest, phantom income, limit order, deferred tax, cancelled check, inflation, risk management, EBITDA, class C shares, Key Rate Duration, option premium, stock market close, real GDP, ex-dividend date, balance sheet, Zero Cost Collar, quality assurance, in escrow, debt service coverage, FTSE, ex-dividend, wholly-owned subsidiary, reverse mortgage, FICO score, VIX, command economy


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use