The retiring farmer generally tries to balance the desire to keep the farm intact as a going concern with the need for a secure assets portfolio to finance retirement. This problem becomes more complex in situations where younger family members choose not to be active in the farm business. Tax-deferred savings are potentially an important component of a retirement plan and could represent a very substantial increase in tax-free assets for many individuals. This study examines the tax deferred retirement savings of farm households. The model is estimated using Agricultural Resource Management Survey (ARMS) 1999 farm-level national data and the Double-Hurdle estimation method. Results indicate that farm household's source of income, age of the farm operator, marginal tax rate, regional location, and participation in government programs are factors that significantly affect investment in tax-deferred savings.