How Do You Offer A Pension? Simple

A new law eases 401(k) and IRA use at small companies

For years, small employers have searched in vain for the perfect retirement plan. But conventional programs, often tailored with big companies in mind, were always lacking: too expensive, too much paperwork, or too restrictive. Now Uncle Sam may be getting closer to the Holy Grail of pensions for small business. The new federal Savings Incentive Match Plan for Employees (SIMPLE), which goes into effect on Jan. 1, 1997, allows small-business owners to put aside money easily and inexpensively into tax-deferred accounts for both themselves and employees.

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