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SIMPLE Problems

The only way your SIMPLE plan will ever rival a 401(k) is if you get out and fight for it.

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This story appears in the March 2003 issue of Entrepreneur. Subscribe »

Entrepreneurs are weary of being left behind. They want equal treatment when it comes to the tax and contribution features of pension plans. Now, groups representing small businesses are pushing Congress to put SIMPLE (Savings Incentive Match Plan for Employees) on the same footing as the 401(k).

When Congress tried to help more small businesses launch pension plans, it created SIMPLE in 1996 to clear regulatory hurdles of 401(k) plans. Legally, employers with 100 or fewer employees who receive at least $5,000 in compensation can adopt a SIMPLE plan.

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