Small business owners have a number of retirement plans available to them. One type of plan is limited to employers with 100 or fewer eligible employees. Under this type of plan, small employers are exempt from most of the nondiscrimination and administrative rules that apply to qualified plans. Such plans are called

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The plan described in the question is a SIMPLE (Savings Incentive Match Plan for Employees) retirement plan, which is designed specifically for small businesses with 100 or fewer employees. This plan allows employers to make contributions to their own retirement accounts and to their employees' accounts, while also being exempt from many of the administrative and nondiscrimination rules that apply to other types of qualified plans, making it a popular choice for small businesses.

Small Business Owners Have a Number of Retirement Plans Available