A savings incentive match plan for employees of small businesses with 100 or fewer employees. The plan is similar to, but more flexible than, a regular IRA. Employees enter into a qualified salary reduction agreement to contribute a percentage of their annual compensation to a tax-deferred retirement account. The employer may either match employee contributions or contribute a fixed percentage of all employees' pay. All earnings grow tax-deferred. SIMPLE is an acronym for Savings Incentive Match PLan for Employees of small employers.