select
Retirement Plans

As a business owner, you think about retirement from two perspectives ― your own and your employees’.

The right employee retirement plan can help you attract and keep qualified employees, as can various executive compensation arrangements. And when it comes to your own retirement, you’ll want asset transfer options that make sense for your business succession plans.

Farm Bureau can help you understand all your options. You’ve invest years in building your business. Let Farm Bureau help with business investments that pay off.

There are two types of retirement plans ― qualified and non-qualified. Below are some commonly asked questions and answers about both types of plans.

Qualified Retirement Plans

Simplified Employee Pension plan (SEP)

What is a SEP?

Is a SEP the right choice for my company?

Are contributions tax-deductible and when is the last day the company can make the contributions?

What is the maximum percentage the business can contribute and can the percentage vary from year to year?

Once the contributions are made, who owns the account and is there a vesting schedule?

Who is eligible for a SEP?

How can I fund a SEP Plan?

Savings Incentive Match Plan for Employees (SIMPLE IRA)

What is a SIMPLE IRA?

Is a Simple IRA plan right choice for my company?

Can my employees contribute their own money and is their a limit on the amount?

Are employer contributions required for a Simple IRA plan?

Are employer contributions tax-deductible?

Once the contributions are made, who owns the account and is there a vesting schedule?

Who is eligible for a Simple IRA plan?

How can I fund a Simple IRA Plan?

401(k) and 403(b) Plans

What is a 401(k) and 403(b) Plan?

Is a 401(k)/403(b) plan the right choice for my company?

Is there a specific number of employees my company needs for a 401(k) plan?

Can employees contribute their own money and is there a limit on the amount?

Are employer contributions required for a 401(k)/403(b) Plan?

Are employer contributions tax-deductible?

Once the contributions are made, who owns the account and is there a vesting schedule?

Who is eligible for a 401(k)/403(b) plan?

How can I fund a 401(k)/403(b) Plan?

Other qualified retirement plans

Non-Qualified Retirement Plans

What is a non-qualified deferred compensation plan?

Is a non-qualified retirement plan right choice for my company?

Is there any specific number of employees my company needs for a Non-Qualified Retirement plan?

Can my employees contribute their own money and is their a limit on the amount?

Are employer contributions required for a Non-Qualified Retirement Plan?

Are employer contributions tax-deductible?

Once the contributions are made, who owns the account and is there a vesting schedule?

Who is eligible for a Non-Qualified Retirement plan?

How can a Non-Qualified Retirement Plan be funded?

SEP - Simplified Employee Pension plan

What is a SEP?
A SEP provides a relatively easy way for you, as a small-business owner, to make annual, tax-deductible contributions to eligible employees’ retirement accounts, as well as your own. By establishing a SEP IRA, retirement contributions can be made at a potentially higher level than in a traditional IRA.

Farm Bureau can help you set up the program necessary to make SEP contributions for yourself and your employees. Because they are simplified, SEP plans are easier to establish and administer than other retirement plans.

Back to Top

Is a SEP the right choice for my company?
The following chart will give you a basic understanding of a variety of employer sponsored retirement plans.

Back to Top

Are contributions tax-deductible and when is the last day the company can make the contributions?
Yes, your and your employees’ contributions are tax-deductible and the generally the latest your company can make the SEP contribution is the last tax filing day.

Back to Top

What is the maximum percentage the business can contribute and can the percentage vary from year to year?
The maximum percentage is 25% of annual compensation and the percentage can change from year to year.

Back to Top

Once the contributions are made, who owns the account and is there a vesting schedule?
Once the contribution is made, all funds contributed belong to the employee and the contribution is 100% vested.

Back to Top

Who is eligible for a SEP?
You may establish a SEP if you are self-employed (with or without employees); or your business is a partnership1, corporation, limited liability company or government entity.

To be eligible for a SEP, you and your employees must be age 21 or older, earn the IRS-established SEP annual minimum salary and have worked for the business at least three of the immediately preceding five years (or the number of years set by you, the employer). All employees who are eligible must be included in the plan.

Back to Top

How can I fund a SEP plan?
A SEP IRA can be funded using Mutual Funds or Annuities.

Find a local agent today to learn more about SEP IRAs.

Back to Top

Simple IRA — Savings Incentive Match Plan for Employees

What is a Simple IRA?
A Simple IRA  is a salary-reduction retirement plan for small businesses. Funding for the plan comes from contributions from you, as the employer, and your employees. All contributions are deducted regularly from salaries before tax.

Farm Bureau can help you set up Simple IRAs for yourself and your employees. Because they are simplified, Simple IRAs are easier to establish and administrative costs can be lower than other retirement plans.

Back to Top

Is a Simple IRA plan the right choice for my company?
The following chart will give you a basic understanding of a variety of employer sponsored retirement plans.

Find a local agent today

Back to Top

Can my employees contribute their own money and is their a limit on the amount?
Yes, your employees including yourself can contribute a portion of their salary. The amount of salary deferral is based on IRS guidelines. Participants who reach 50 or older can have an increased amount of salary deferral.

Back to Top

Are employer contributions required for a Simple IRA plan?
Yes, you have two options for the required employer contribution.

Back to Top

Are employer contributions tax-deductible?
Yes for both you and your employees.

Back to Top

Once the contributions are made, who owns the account and is there a vesting schedule?
Once the contribution is made, all funds contributed belong to the employee and the contribution is 100% vested.

Back to Top

Who is eligible for a Simple IRA plan?
If your company has fewer than 100 employees, an employee including yourself who are have received at least $5,000 in compensation from your company in the preceding year or is expected to receive at least $5,000 in the current year, and you don’t have another employer-sponsored retirement plan in place is eligible.

Back to Top

How can I fund a Simple IRA plan?
A Simple IRA plan can be funded using Mutual Funds or Annuities.

Find a local agent today.

Back to Top

401(k) and 403(b) Plans

What is a 401(k) and 403(b) plan?
A 401(k) plan is a salary-reduction retirement plan for any size of businesses. Funding for the plan comes from contributions from you, as the employer, and your employees. All contributions are deducted regularly from salaries.

A 403(b) plan is a retirement plan for University, civil government, and not-for-profit employees. It has the same characteristics and benefits of a 401k.

Back to Top

Is a 401(k)/403(b) plan the right choice for my company?

The following chart will give you a basic understanding of a variety of employer sponsored retirement plans.

Back to Top

Is there a specific number of employees my company needs for a 401(k) plan?
No. A company with one or more employees, including the employer, can offer a 401(k) plan.

Back to Top

Can employees contribute their own money and is there a limit on the amount?
Yes, your employees including yourself can contribute a portion of their salary. The amount of salary deferral is based on IRS guidelines. Participants who reach age 50 or older can have an increased amount of salary deferral.

Back to Top

Are employer contributions required for a 401(k)/403(b) plan?
Maybe. Depending on the type of plan document, a 401(k) plan may or may not require an employer contribution. Historically, plans with employer contributions have increased employee participation.

Back to Top

Are employer contributions tax-deductible?
Yes, for both you and your employees.

Back to Top

Once the contributions are made, who owns the account and is there a vesting schedule?
Once the contribution is made, all funds contributed belong to the employee and the contribution is 100% vested.

Back to Top

Who is eligible for a 401(k)/403(b) plan?
Eligibility for a 401(k)/403(b) plan can vary depending on the plan document. The maximum restriction for entry into a 401(k)/403(b) plan is Age 21 and one year of service (usually defined as 1000 hours within a plan year.) Plans can also excluded employees under collective bargaining and non-resident aliens.

Back to Top

How can I fund a 401(k)/403(b) plan?
A 401(k)/403(b) plan is funded with Mutual Funds.

Find a local agent today.

Back to Top

Other Qualified Retirement Plans

Other qualified retirement plans
As part of our Registered Investment Advisory service, we can offer other types of qualified retirement plans suited for specific business situations and employer’s needs.

Find a local agent today.

Non-Qualified Retirement Plans

What is a non-qualified deferred compensation plan?
It is a contractual arrangement between your business and your key employees through which a portion of each eligible employee's current and future salary is deferred until a later date.

Back to Top

Is a non-qualified retirement plan right choice for my company?
The following chart will give you a basic understanding of a variety of employer sponsored retirement plans.

Find a local agent today

Back to Top

Is there any specific number of employees my company needs for a non-qualified retirement plan?
No. A company with one or more employees including the employer can offer a Non-Qualified Retirement plan.

Back to Top

Can my employees contribute their own money and is their a limit on the amount?
Usually, the only contribution is by the employer.

Back to Top

Are employer contributions required for a non-qualified retirement plan?
Since you and the selected employees are in a contractual agreement, an employer contribution is required.

Back to Top

Are employer contributions tax-deductible?
Yes, at the time of distribution, not contribution, like a qualified plan.

Back to Top

Once the contributions are made, who owns the account and is there a vesting schedule?
Until the requirement(s) of the contractual agreement are met and the funds are distributions, all contributions are assets of the employer. A vesting schedule can be put in place.

Back to Top

Who is eligible for a non-qualified retirement plan?
Eligibility for a Non-Qualified Retirement plan is defined by the employer. The employer does not have to include all employees in the plan.

Back to Top

How can a non-qualified retirement plan be funded?
A Non-Qualified Retirement plan is funded with Mutual Funds, annuities or life insurance.

Find a local agent today

Back to Top

IMPORTANT: The information and material contained on this Web site is not an offer to sell or a solicitation to buy any security or any insurance product in any jurisdiction. No security or other insurance product is offered or will be sold in any jurisdiction in which such offer or solicitation purchase or sale would be unlawful under the securities, insurance or other laws of such jurisdiction. Not all products are available in all states. Exclusions, limitations and reductions may apply. This Web site briefly highlights Farm Bureau's insurance policies and their benefits. The contract is contained only in the policy. Farm Bureau products are offered by Farm Bureau agents -- for more information about any Farm Bureau product, please contact your local agent or nearest office using the Agent Locator.

There are various income limits and other requirements necessary to qualify for some of the tax-savings benefits of all IRAs. See your Farm Bureau representative and tax adviser for information regarding your particular situation.

 

 

Securities & services offered through FBL Marketing Services, LLC+, 5400 University Ave., West Des Moines, IA 50266, 877/860-2904, Member SIPC.


Property-casualty insurance products are offered through Farm Bureau Property & Casualty Insurance Company+* and Western Agricultural Insurance Company+*/West Des Moines, IA and are intended for residents of AZ, IA, KS, MN, NE, NM, SD and UT.

Fixed life insurance and annuity products are offered through Farm Bureau Life Insurance Company+*/West Des Moines, IA and are intended for residents of AZ, IA, ID, KS, MN, MT, ND, NE, NM, OK, SD, UT, WI and WY.

Variable life insurance and annuity products are underwritten by an insurance company that is not affiliated with our companies.

+Affiliates *Company providers of Farm Bureau Financial Services

Terms and Conditions
Using this site means you accept its terms.
Buy SSL Certificate
SSL CERTIFICATES - Get Info
©2014 FBL Financial Group, Inc.