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 The salary reduction simplified employee pension plan format has since been replaced by the "SIMPLE" plan, which was created by the Small Business Job Protection Act of 1996.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: 1031 exchange, 1035 exchange, EBITDA, retained earnings, covered put, option premium, limit order, margin rate, phantom income, deferred tax, APR, labor relations, current ratio, LIBOR, FTSE, command economy, stock split, 144a, ex-dividend, in escrow, reverse mortgage, quality assurance, Key Rate Duration, implied volatility, per diem, risk management, inflation, dividends payable, stock market close, minority interest, diluted share, annual return, ex-dividend date, VIX, average price per share, open position, 401a, wholly-owned subsidiary, balance sheet, deferred revenue, irrevocable trust, FICO score, cancelled check, class C shares, Zero Cost Collar, real GDP, required rate of return, liquidity ratio, debt service coverage


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | 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