Individual Retirement Accounts

Why consider an IRA? Even if you have other retirement options through work — like a pension or 401(k) — an individual retirement account is an easy way to prioritize savings.

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IRAs are tax-advantaged accounts that can hold investments, such as mutual funds and other investments. You tend to get more flexibility with an IRA than you would with a typical 401(k) plan, but you also get fewer guarantees than other retirement products, such as annuities.

Farmers Insurance and Financial Services Agents can discuss various IRA types, and how each option might fit in your financial and retirement plan.

Common retirement concerns

Here are some common retirement concerns, and how IRAs may help: 

Your job doesn’t offer 401(k) plans


You want to save pre-tax dollars but your employer doesn’t offer a 401(k) — or any other retirement plan options.

Possible Solution:

There are two categories of tax-deferred Traditional IRAs: deductible and nondeductible. If you qualify to deduct your contributions, you can subtract the amount you contribute when you file your tax return for the year, reducing the income tax you owe. If you don’t qualify to deduct, your contribution is made with after-tax income.

You want early access to savings


You contribute to your 401(k) at work, and think you could save even more for retirement. But you’d like the option to access savings if you need it before you retire.

Possible Solution:

Roth IRAs offer more flexibility for withdrawal before retirement. Different from traditional IRAs, Roth IRA contributions are subject to income limits and aren’t tax-deductible — but withdrawals of your earnings are tax-free if you are at least 59½ and your account has been opened for at least five years.

You have several 401(k) and 403(b) plans


You’ve built your career working for several different companies — all those 401(k) or 403(b) accounts are hard to manage and easy to ignore.

Possible Solution:

Rollover IRAs let you to consolidate retirement savings from other plans in a single I R A. You can invest the funds in whatever way you choose, so you can manage your savings more easily and efficiently.

You’re self-employed


As an independent professional, you’re entirely responsible for your own retirement.

Possible Solution:

SEPIRAs allow high contribution limits for business owners who want to save large amounts and deduct contributions from personal income. If you have many employees who want to make retirement contributions, consider SIMPLE IRAs  they can be easier to set up and maintain than 401(k) plans.

See the bigger financial picture at Farmers®

See the bigger financial picture at Farmers®. Because of differences between IRAs types, the account you choose will vary on your individual situation. Your Farmers Insurance and Financial Services Agent can provide more specific information about IRA and Roth IRA options — including income limits, tax considerations, and penalties for early withdrawal and distribution requirements.

Farmers builds strong relationships

At Farmers, we’ve spent 90 years putting customers first — with the personalized attention and information to help so you can see the bigger financial picture.

Contact a Farmers Insurance and Financial Services Agent near you today.

Purchasers of investment products should consider the investment objectives, risks, charges and expenses of a fund before investing. This and other important information is contained in the prospectus or offering statement, which can be obtained from your Farmers Insurance and Financial Services Agent and should be read carefully before investing. Farmers Financial Solutions, LLC and Farmers Insurance and Financial Service Agents do not provide tax advice. You should consult with your tax professional as to how IRS rules may apply to your own situation. Withdrawals and/or distributions made prior to age 59 ½ may be subject to tax consequences and an additional IRS 10% tax penalty.

Gil Weiss trains sales teams at dealerships for nearly every major automaker in North America.

We interviewed Weiss to seek out tips on how to negotiate with a car dealer to achieve maximum savings.

Read the story: New Car Tactics that Could Save $100s (or $1,000s) on Your Next Deal