Frequently Asked Questions

Q: How will I determine which plan is appropriate for me...SEP, SIMPLE, Individual (k), 401(k), or Profit Sharing?

A: We offer plan design and installation services. You work with your agent to identify your needs as a business owner and a plan design specialist will suggest a plan to satisfy those needs. We'll then provide you with the documents needed to implement the plan.

Q: Will I be working with my local agent or will you bring in specialists to talk to me?

A: Your State Farm® agent will assist you in identifying your retirement plan goals and objectives along with your plan's investment objectives. A plan design specialist will design a plan to fit your needs and provide assistance in implementing the plan. If you elect to use our Retirement Plan Administration Service, a team will be assigned to assist you with your plan administration needs.

Q: Does State Farm offer plan administration services for a fee?

A: State Farm offers retirement plan administration services to employers who adopt a State Farm provided document and who invest plan assets in State Farm products. The fees are very competitive and vary depending on the plan's complexity.

Q: I already have a plan with another firm. Can I still invest with State Farm?

A: Through the State Farm Retirement Plan Funding Program, State Farm acts solely as an investment provider for your company's retirement plan. Your employees may invest in State Farm products, while a third-party administrator provides recordkeeping and reporting for the plan.

Q: What type of administrative reports will be available to the plan administrator?

A: Plan level reports will be provided to the plan's sponsor and participant level reports will be provided to the individual participants. These reports will provide information such as contribution amounts as well as account values. The frequency of the reports will vary depending on the type of plan.

Q: What happens if I select an Individual(k) plan and later hire employees to expand my business?

A: If you plan to hire employees in the near future, an Individual(k) may not be the best plan for you. When an employee is hired, notify your State Farm agent immediately to find out your options. You may need to amend the plan.

Q: May I take a loan from my 401(k) plan?

A: Loans are permitted in the 401(k) plans.