To amend the Internal Revenue Code of 1986 to provide for the establishment of simple retirement accounts, and for other purposes.

Amends the Internal Revenue Code to allow an eligible employer with 100 employees or fewer to contribute up to $6,000 to a simple retirement account for an eligible employee electing to participate in a qualified salary reduction arrangement. Makes such contribution deductible for the employer and nondeductible for the employee. Prohibits such account form being treated as an employee benefit plan or pension plan for purposes of the Employee Retirement Income Security Act of 1974. Permits a simple retirement account to meet the 401(k) nondiscrimination tests if certain requirements are met with respect to contributions, exclusive benefits, and vesting. Gives an eligible employer a credit of up to $500 for pension plan start-up costs.