RETIREMENT & IRAs
Make a Business Retirement Plan
That Grows With You

Choosing a Retirement Plan for Your Business

Hiring and keeping the right employees is important to your business's success — and offering an attractive benefits package is a key part of recruiting and retaining the best people. The information below provides an overview of small business retirement plans available through State Farm®.

Sole proprietors, partnerships, limited liability companies, Sub S Corporations, and C Corporations that do not employ any common-law employees have several options for business retirement plans. The business owner's spouse (if employed and compensated by the business) may also participate in these plans.

Individual 401(k)

For businesses with no common-law employees, these business retirement plans allow owners to maximize their contributions. Employer contributions are tax deductible (subject to applicable limits) to the business, and salary deferrals can be made on a pre-tax basis (which are excluded from income for federal income tax purposes) or as Designated Roth Contributions.

Learn more about Individual 401(k)

SEP IRA

Simplified employee pension (SEP) plans allow business owners to set aside money in a retirement account for themselves (and spouse, if applicable) subject to applicable limits. There are no administration costs, paperwork is minimal, and all contributions are tax deductible to the business.

Learn more about SEP IRA

SIMPLE IRA

Since an owner-only business is less than 100 employees, a business owner can establish a SIMPLE IRA (including a spouse). A business owner (and spouse) is able to defer a portion of his/her salary as pre-tax contributions and the business makes a tax-deductible matching or non-elective contribution. There are no administration costs and minimal paperwork.

Learn more about SIMPLE IRA

Disclosures

Risk Disclosures

Investors should carefully consider investment objectives, risk, charge and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses which can be obtained by visiting statefarm.com®. Read it carefully.

Investing involves risk, including potential for loss.

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

AP2018/06/0715

Not FDIC Insured

  • No Bank Guarantee
  • May Lose Value