RETIREMENT & IRAs
Make Business Retirement Plans That Grow With You

Let Us Help You Make a Plan for Retirement Funding

Small Business

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. State Farm® can design an employee benefits package, including the right business retirement plans, with your goals in mind. Your local 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.

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(k)

For businesses with no common-law employees, these business retirement plans allow owners 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.

SEP IRA

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

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.

Retirement Plan Funding Program

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

Disclosures

Risk Disclosures

Investing involves risk, including potential for loss.

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

AP2013/11/2174

Not FDIC Insured

  • No Bank Guarantee
  • May Lose Value