Hiring and retaining the right employees is important to your business’s success. Offering a benefit package that is attractive is an important part of recruiting and retaining the best employees. State Farm® can assist you with employee benefits, including the right retirement plan. We have a knowledgeable team that will help design your plan with your goals in mind. Your local State Farm agent can educate you and your employees on how the plan works, the benefits of participation, and how it will grow with your business every step of the way.

Comparison Of Plan Features And Benefits

  • Individual(k)

    For businesses with no common-law employees, this plan allows owner(s) to maximize their contributions. Employer contributions are tax deductible to the business and salary deferral can be in the form of pre-tax contributions (which are excluded from income for federal income tax purposes) or designated Roth contributions. Learn more.

  • SEP IRA

    Simplified employee pension (SEP) plans allow the business to make all contributions for every eligible employee. There are no administration costs, minimal paperwork, and all contributions are tax deductible to the business. Learn more.

  • SIMPLE IRA

    Any business with 100 or fewer employees can establish a SIMPLE IRA plan. There are no administration costs and it offers benefits similar to a 401(k) plan. Employees are able to defer a portion of their salary, pre-tax, and the business makes a tax-deductible matching or non-elective contribution. Learn more.

  • Safe Harbor 401(k) Plan

    Any public or private company can establish a 401(k) plan. These plans are widely recognized for the advantage they offer of allowing eligible employees to contribute a portion of their salary, either pre-tax or as a designated Roth contribution. The Safe Harbor 401(k) Plan requires the business to contribute either matching or non-elective amounts to the plan on behalf of eligible employees. Profit-sharing contributions are optional. Safe Harbor plans do not restrict the amount of money highly compensated employees can contribute to the plan. Learn more.

  • Traditional 401(k) Plan

    The Traditional 401(k) Plan allows eligible employees to contribute a portion of their salaries, either pre-tax or as a designated Roth contribution. The business may choose to contribute matching, non-elective, or profit-sharing amounts to the plan on behalf of eligible employees. Employer contributions are tax deductible and employee contributions may be excluded from income for federal income tax purposes.  Learn more.

  • Retirement Plan Funding Program

    If you’d like to add State Farm Mutual Funds® to your current retirement plan, you can use our investment only option. We’ll send quarterly statements to the plan trustee and also the administrator if requested. Learn more.

For sole proprietors, partnerships, limited liability companies, Sub S Corporations or C Corporations that do not employ any common-law employees, there are several options for retirement plans. The business owner’ spouse (if employed and compensated by the business) may also participate in the plan.

Comparison Of Plan Features And Benefits

  • Individual(k)

    For businesses with no common-law employees, this plan allows owner(s) to maximize their contributions. Employer contributions are tax deductible to the business and salary deferral can be pre-tax contributions (which are excluded from income for federal income tax purposes) or designated Roth contributions. Learn more.

  • SEP IRA

    Simplified employee pension (SEP) plans allow the business to make all contributions for every eligible employee. There are no administration costs, minimal paperwork, and all contributions are tax deductible to the business. Learn more.

  • SIMPLE IRA

    Any business with 100 or fewer employees can establish a SIMPLE IRA. There are no administration costs and it offers benefits similar to a 401(k) plan. Employees are able to defer a portion of their salary, pre-tax, and the business makes a tax-deductible matching or non-elective contribution. Learn more.

  • Retirement Plan Funding Program

    If you’d like to add State Farm Mutual Funds® to your current retirement plan, you can use our investment only option. We’ll send quarterly statements to the plan trustee and also the administrator if requested. Learn more.

Operating your business is your primary concern, so let State Farm® help you with your retirement plan. We have resources that can design a strategy that meets your goals. Your State Farm® agent can talk to your employees about the plan and investment options. Service on the plan is available online and through a toll-free phone number, so you can get back to running your business while your own retirement assets grow.

Comparison Of Plan Features And Benefits

  • SEP IRA

    Simplified employee pension (SEP) plans allow the business to make all contributions for every eligible employee. There are no administration costs, minimal paperwork, and all contributions are tax deductible to the business. Learn more.

  • SIMPLE IRA

    Any business with 100 or fewer employees can establish a SIMPLE IRA. There are no administration costs and it offers benefits similar to a 401(k) plan. Employees are able to defer a portion of their salary, pre-tax, and the business makes a tax-deductible matching or non-elective contribution. Learn more.

  • Safe Harbor 401(k) Plan

    Any public or private company can establish a 401(k). These plans are widely recognized for the advantage they offer of allowing eligible employees to contribute a portion of their salary, either pre-tax or as a designated Roth contribution. The Safe Harbor 401(k) Plan requires the business to contribute either matching or non-elective amounts to the plan on behalf of eligible employees. Profit-sharing contributions are optional. Safe Harbor plans do not restrict the amount of money highly compensated employees can contribute to the plan. Learn more.

  • Traditional 401(k) Plan

    The traditional 401(k) plan allows eligible employees to contribute a portion of their salaries, either pre-tax or as a designated Roth contribution. The business may choose to contribute matching, non-elective, or profit-sharing amounts to the plan on behalf of eligible employees. Employer contributions are tax deductible and employee contributions may be excluded from income for federal income tax purposes. Learn more.

  • Retirement Plan Funding Program

    If you’d like to add State Farm Mutual Funds® to your current retirement plan, you can use our investment only option. We’ll send quarterly statements to the plan trustee and also the administrator if requested. Learn more.

Comparison Of Plan Features And Benefits

Individual(k) SEP IRA SIMPLE IRA Safe Harbor 401(k) Traditional 401(k)
Who would this plan be suitable for? Businesses with no common-law employees and wanting to maximize contributions. Any business willing to make all plan contributions. Any business with under 100 employees and seeking a mix of employee and employer contributions. A business that’s able to make a contribution and wants to allow employees to make salary deferrals. A business that doesn’t want required employer contributions and the owners are not concerned with maximizing their contributions.
Key benefits Offers Roth or pre-tax contributions and loan privileges. Easy to set up and operate. No annual costs, no IRS filing requirements. Easy to set up and operate. No annual costs, no IRS filing requirements. Easier to operate than a 401(k), offers similar features. Allows larger contributions in many cases. Roth contributions, automatic enrollment, and automatic increase features available. Roth contributions, automatic enrollment, and automatic increase features available.
Maximum contribution per participant for tax years 2013 Elective deferrals and employer contributions combined may not exceed the lesser of 100% of compensation or $51,000 per participant. Employer contributions only. Contribution percentage may vary each year from 0% to 25% of compensation up to a maximum of $51,000 per participant. Elective deferral limit is $12,000.  “Catch-up” contribution is $2,500 for those 50 years of age and older.  Employer must make a matching contribution of 3% or non-elective contribution of 2%. Elective deferral limit is $17,500.  “Catch-up” contribution is $5,500 for those 50 years of age and older.  Elective deferrals and employer contributions combined may not exceed the lesser of 100% of compensation or $51,000 per participant. Elective deferral limit is $17,500.  “Catch-up” contribution is $5,500 for those 50 years of age and older.  Elective deferrals and employer contributions combined may not exceed the lesser of 100% of compensation or $51,000 per participant.
Can there be a vesting schedule? No. No. No. Yes, on discretionary contributions only. Yes, on any employer contributions.
Are loans an option? Yes. No. No. Yes. Yes.
Additional plan information IRS Form 5500 may be required. Annual administration fee required. No administrative costs. No IRS annual filing requirements. No administrative costs. No IRS annual filing requirements. IRS Form 5500 may be required. Annual administration fee required. IRS Form 5500 may be required. Annual administration fee required.
Investment options State Farm Mutual Funds. State Farm Mutual Funds or State Farm Annuities. State Farm Mutual Funds. State Farm Mutual Funds. State Farm Mutual Funds.
More info. Individual(k) SEP IRA SIMPLE IRA Safe Harbor 401(k) Traditional 401(k)

Risk Disclosures

Investing involves risk, including potential for loss.

A 10 percent tax penalty may apply for withdrawals from tax-qualified products before age 59½.

Additional Disclosures

Mutual Funds Disclosures

Before investing, consider the funds' investment objectives, risks, charges and expenses. Contact State Farm VP Management Corp (1-800-447-4930) for a prospectus or summary prospectus containing this and other information. Read it carefully.

General

Automatic investment plans do not assure a profit or protect against loss.

Neither State Farm nor its agents provide investment, tax, or legal advice.

It is not possible to invest directly in an index.

State Farm VP Management Corp. is a separate entity from those State Farm entities which provide banking and insurance products.

As of June 2nd, 2010, additional fees may apply to certain accounts with balances less than $5000.

Each State Farm LifePath Fund invests all of its assets in a corresponding LifePath Master Portfolio under a master/feeder structure. BlackRock Fund Advisors (“BFA”) is the investment advisor to the LifePath Master Portfolios. State Farm Investment Management Corp. (SFIMC) is the investment advisor to the State Farm LifePath Funds. State Farm VP Management Corp. (SFVPMC) is the distributor of the State Farm LifePath Funds. Neither SFIMC or SFVPMC, or their affiliates, are affiliated with BFA or its affiliates.

BlackRock Investors Services (BIS) provides marketing support to the LifePath Master Portfolios. BFA and BIS are wholly owned subsidiaries of BlackRock Institutional Trust Company, N.A. (“BTC”). Neither BTC or its affiliates are affiliated with State Farm. BTC is located at 400 Howard Street, San Francisco, CA 94105.

BlackRock Fund Advisors (“BFA”) is the investment sub-advisor to the S&P 500 Index Fund.

Ascensus provides recordkeeping and administrative services for retail 401(k) retirement plans offered by State Farm Investment Management Corp.

Net Asset Value (NAV) is calculated by adding all of the assets of a Fund, subtracting the Fund’s liabilities, then dividing by the number of outstanding shares.

Money market mutual fund data is not available for funds other than the State Farm Money Market Fund.

Indices

The Russell 2000® Index tracks the common stock performance of the 2,000 smallest U.S. companies in the Russell 3000® Index.

The Russell 2500 Index tracks the 2,500 smallest companies in the Russell 3000 Index.

The Russell 1000 Index is a stock market index that represents the highest-ranking 1,000 stocks in the Russell 3000 Index.

The Russell Midcap Index measures the performance of the mid-cap segment of the US equity market and is a subset of the Russell 1000 Index.

The Dow Jones Industrial Average is an unmanaged average of 30 actively traded stocks.

The NASDAQ Composite is an unmanaged market capitalization weighted index that is designed to represent the performance of the National Market System.

The S&P 500® Index tracks the common stock performance of 500 large U.S. companies.

The S&P 1500 Index is a stock market index of U.S. stock that includes all stocks in the large cap S&P 500 Index, the mid cap S&P 400 Index, and the small cap S&P 600 Index.

The Morgan Stanley Capital International Europe, Australasia and Far East Free (EAFE® Free) Index currently measures the performance of stock markets of Europe, Australia, New Zealand, and the Far East.

The Morgan Stanley Capital International Europe Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Europe.

The Barclays 1-5 Year U.S. Treasury Index measures the performance of short-term U.S. Treasury Securities maturing within one to five years.

The Barclays U.S. Aggregate Bond Index represents debt securities in the U.S. investment grade fixed rate bond market.

The Barclays Municipal Bond Index is an unmanaged index representative of the tax-exempt bond market.

The Barclays High Yield Index includes all fixed income securities having a maximum quality rating from Moody’s Investor Service of Ba1, a minimum amount outstanding of $100 million, and at least one year to maturity.

The Barclays TIPS Index measures the performance of the US Treasury Inflation-Protected Securities (TIPS) market.

The Citigroup 3 Month T-Bill Index is an average of the last 3-month Treasury bill issues (excluding the current month-end bill).

The FTSE EPRA/NAREIT Developed REIT and Non-Reit Index is a subset of the Developed Index, which is designed to track the performance of listed real estate companies and REITS worldwide.

The MSCI ACWI (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.

The Nikkei 225 Index is a price-weighted index comprised of Japan’s top 225 blue-chip companies on the Tokyo Stock Exchange.

The Credit Suisse High Yield Index is designed to mirror the investible universe of the $U.S. – Denominated high yield debt market.

The New York Stock Exchange is considered the largest equities-based exchange in the world based on total market capitalization of its listed securities.

The CBOE 10-Year Treasury Note (TNX) is based on 10 times the yield-to-maturity on the most recently auctioned 10-year Treasury note. The notes are usually auctioned every three months following the refunding cycle: February, May, August and November. The expiration period of these notes is three near-term months plus three additional months from the March quarterly cycle. The aggregate position and exercise limits are 25,000 contracts on the same side of the market.

The Blended Benchmark for the Equity and Bond Fund is a combination of 60% of the S&P 500 Index and 40% of the Barclays U.S. Aggregate Bond Index, rebalanced monthly.

The Blended Benchmark for the LifePath Funds is a combination of the holdings in the Barclays U.S Aggregate Bond Index, Russell 1000 Index, MSCI ACWI ex-U.S. Index, FTSE EPRA/NAREIT Developed Real Estate Index and Barclays TIPS Index. The weightings of the indices are adjusted quarterly to reflect the funds' changing asset allocations over time.

Trademarks

iShares and LifePath®, LifePath 2020®, LifePath 2030®, LifePath 2040®, and LifePath 2050® are all registered trademarks of BlackRock Institutional Trust Company, N.A. All other trademarks, service marks or registered trademarks are the property of their respective owners.

“Standard & Poor’s®”, “S&P®”, “S&P 500®”, “Standard and Poor’s 500”, and “500” are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by State Farm Life Insurance Company, State Farm Life and Accident Assurance Company and the State Farm Variable Product Trust. Neither the Large Cap Equity Index Fund nor the Stock and Bond Balanced Fund is sponsored, endorsed, sold or promoted by Standard & Poor’s, and Standard & Poor’s makes no representation regarding the advisability of investing in the Large Cap Equity Index Fund or the Stock and Bond Balanced Fund.

The Russell 2000® Index is a trademark/service mark, and Russell™ is a trademark of the Frank Russell Company. The Small Cap Equity Index Fund is not sponsored, endorsed, sold or promoted by, nor in any way affiliated with the Frank Russell Company. Frank Russell Company is not responsible for and has not reviewed the Small Cap Equity Index Fund nor any associated literature or publications and Frank Russell Company makes no representation or warranty, express or implied, as to their accuracy, or completeness, or otherwise.

The EAFE® Free Index is a trademark, service mark and the exclusive property of Morgan Stanley Capital International, Inc. (“MSCI”) and its affiliates and has been licensed for use by the State Farm Variable Product Trust (the “Trust”). The International Equity Index Fund (the “Fund”), based on the EAFE® Free Index, has not been passed on by MSCI as to its legality or suitability, and is not issued, sponsored, endorsed, sold or promoted by MSCI. MSCI makes no warranties and bears no liability with respect to the Fund. MSCI has no responsibility for and does not participate in the management of the Fund assets or sale of the Fund shares. The Trust’s Prospectus contains a more detailed description of the limited relationship MSCI has with the Trust and the Fund.

Non-US Residents

Each of the investment products and services referred to on the State Farm Mutual Funds web site is intended to be made available to customers or prospective customers residing in the United States. The customer’s U.S. permanent residence address must be a street address. This web site shall not be considered a solicitation or offering for any investment product or service to any person in any jurisdiction where such solicitation or offer would be unlawful.

Business Continuity Plan

State Farm VP Management Corp. has developed a Business Continuity Plan on how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, download this information (PDF 27 KB) on our business continuity plan.

Need Assistance?

1-800-447-4930 Mutual Funds
1-888-702-2307 Variable Products

AP2012/11/1337

Not FDIC Insured
  • No Bank Guarantee
  • May Lose Value

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