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Retirement Plans for Your Small Business

Small Business Retirement Plans and Investments

State Farm® can assist you with small business retirement plans and other employee benefits. We have a knowledgeable team that will help design a plan with your investment goals in mind. Your local State Farm agent can educate you and your employees on how business retirement plans work, the benefits of participation, and how it will grow with your business every step of the way.

At State Farm, we know that hiring and retaining the right employees is important to your business's success. We can help you offer an attractive benefits package that will help you recruit and retain the best employees.

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 deferrals can be made on a pre-tax basis (which are excluded from income for federal income tax purposes) or as Designated Roth Contributions.

SEP IRA Simplified Employee Pension (SEP) plans allow the business to make all contributions for eligible employees. There are no administration costs, minimal paperwork, and all contributions are tax deductible to the business.

SIMPLE IRA Any business with 100 or fewer employees can invest in 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.

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 allow highly compensated employees to contribute up to the maximum salary deferral limit for a given year.

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 pre-tax contributions may be excluded from income for federal income tax purposes.

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 your plan administrator, if requested.

Operating your business is your primary concern, so let State Farm help you with your retirement plans. 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.

Risk Disclosures

Investing involves risk, including potential for loss.

A 10 percent tax penalty may apply for withdrawals from tax-qualified products before age 59 1/2.

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Not FDIC Insured

  • No Bank Guarantee
  • May Lose Value