If an employer participates in the program or offers their employees a qualified plan, the State will waive the 0 annual report filing fee.
Withdrawals of designated Roth contributions are tax-free provided they are considered a qualified distribution where the account is held for at least five years and in the event of a participant's attainment of age 59½, death or disability.
Nonqualified distributions will be taxed pro-rata; Therefore the basis (contributions) will be tax-free and any earnings will be subject to ordinary income tax plus a 10% premature distribution penalty (exceptions may apply). Please consult your tax advisor about your particular situation.
SIMPLE stands for Savings Incentive Match Plan for Employees.
It's a payroll deduction plan that permits an employee to make pretax salary deferral contributions in addition to the employer's contribution.