To help you prepare your taxes, review the information below specific to your State Farm Mutual Funds®.

Find answers to some of the most commonly asked tax questions. Click on a question below to read the answer.

General

  • When will I receive my tax forms?

    1099-B, 1099-DIV, 1099-R, 1099-Q, 1099-SA, and 1099-INT tax forms are mailed by the end of January. Form 5498-ESA is mailed in April. Forms 5498 and 5498-SA are mailed in May.

  • Why did I receive a 1099 form?

    • IRS Form 1099-R reports distributions from a 401(k) or a traditional, Roth, SEP, or SIMPLE IRA. You will only receive this form if there was a distribution.
    • IRS Form 1099-Q reports distributions from a qualified tuition program under Section 529, or a Coverdell ESA.
    • IRS Form 1099-SA reports distributions from an Archer MSA.
    • IRS Form 1099-DIV reports taxable dividends and capital gains of $10 or more paid to the shareowner, whether paid in cash or reinvested.
    • IRS Form 1099-B reports distributions from a non-tax qualified account.
    • IRS Form 1099-INT reports tax exempt interest dividends and private activity bond interest paid by the Tax Advantaged Bond Fund and Municipal Bond Fund.

  • What is a capital gains distribution?

    Capital gains distributions are payments (usually annually) to mutual fund shareholders of long-term capital gains the fund has realized on the sale of portfolio securities.

  • How do I request a duplicate year-end investor statement or tax form?

    To request a duplicate year-end record or tax form to be mailed to your address of record, please call us at 1-800-447-4930. It will take a minimum of five days to receive your duplicate record.

IRAs

  • When is the deadline to do a conversion for 2012?

    December 31st, 2012.

  • When is the deadline to perform a recharacterization of 2011 contributions?

    An automatic extension is allowed for shareowners wishing to recharacterize their contributions. The tax filing extension is Oct. 15th, 2012.

  • What happens if I contribute too much to my IRA?

    A maximum allowable contribution is the aggregate amount that can be contributed to IRAs in a year and for 2011 is the lesser of $5,000 ($6,000 if you are 50 or older) or 100 percent of earned income. If someone contributes more than the maximum allowable amount, the difference is considered to be an “excess contribution” and may be subject to a 6 percent tax penalty depending on how the excess is handled. Such removed contribution will not incur the 6 percent excess-contribution tax penalty. Any current-year contribution may be removed and treated as an excess if the contribution and related earnings are removed by the tax return due date (including extensions).

  • Why did I receive my form 5498 in May? I have already filed my taxes. Now what do I do?

    IRS Form 5498 is for recordkeeping purposes only and is not required to be sent to the IRS with an individual’s income tax return. A record of the information on the 5498 is sent to the IRS by State Farm®.

    The 5498 reports contributions made to a tax-qualified retirement accounts including, rollovers, conversion contributions, and recharacterization contributions.

    Since contributions can be made up until the tax filing date, this form is not sent to the shareowner until the end of May, as required by law.

    Non-tax-qualified accounts do not receive a 5498.

  • Why did I not receive a 1099-DIV for my IRA?

    A 1099-DIV is not issued for an IRA since the account is a tax-qualified vehicle.

Taxable Accounts

Articles

Browse our collection of articles about important tax-planning subjects.

  • Overview Of Mutual Fund Taxation

    Taxes are an important consideration for mutual fund investing. Learn about the different ways a mutual fund can generate income for you if you hold shares in a non-tax-qualified account.

  • Cost Basis Reporting Changes

    Cost basis reporting regulations have changed requiring mutual funds to report cost basis information to shareholders and the IRS. Read more to learn about cost basis reporting and find out how these changes impact you.

  • Directly Deposit Your Tax Refund

    Did you know that you can directly deposit your tax refund into one or more of your State Farm Mutual Funds® accounts? Follow these step-by-step instructions when you file your taxes.

  • Use Your Refund Wisely

    There are so many ways you could spend your refund, but there may be better alternatives to consider.

  • IRA Learning Center

    Find contribution limits for your IRA and maximize your tax savings.

Legislation

Learn about some of the key legislative provisions that may affect your tax situation.

Risk Disclosures

Investing involves risk, including potential for loss.

An investor should consider, before investing, whether the investor’s or designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program.

Before investing, consider the investment objectives, risks, fees and expenses of the funds. Contact State Farm VP Management Corp. (1-800-447-4930) for a mutual fund prospectus or summary prospectus or The State Farm College Savings Enrollment Handbook and Participation Agreement containing this and other information. Read it carefully.

Additional Disclosures

Mutual Funds Disclosures

Before investing, consider the funds' investment objectives, risks, charges and expenses. Contact State Farm VP Management Corp (1-800-447-4930) for a prospectus or summary prospectus containing this and other information. Read it carefully.

General

Automatic investment plans do not assure a profit or protect against loss.

Neither State Farm nor its agents provide investment, tax, or legal advice.

It is not possible to invest directly in an index.

State Farm VP Management Corp. is a separate entity from those State Farm entities which provide banking and insurance products.

As of June 2nd, 2010, additional fees may apply to certain accounts with balances less than $5000.

Each State Farm LifePath Fund invests all of its assets in a corresponding LifePath Master Portfolio under a master/feeder structure. BlackRock Fund Advisors (“BFA”) is the investment advisor to the LifePath Master Portfolios. State Farm Investment Management Corp. (SFIMC) is the investment advisor to the State Farm LifePath Funds. State Farm VP Management Corp. (SFVPMC) is the distributor of the State Farm LifePath Funds. Neither SFIMC or SFVPMC, or their affiliates, are affiliated with BFA or its affiliates.

BlackRock Investors Services (BIS) provides marketing support to the LifePath Master Portfolios. BFA and BIS are wholly owned subsidiaries of BlackRock Institutional Trust Company, N.A. (“BTC”). Neither BTC or its affiliates are affiliated with State Farm. BTC is located at 400 Howard Street, San Francisco, CA 94105.

BlackRock Fund Advisors (“BFA”) is the investment sub-advisor to the S&P 500 Index Fund.

Ascensus provides recordkeeping and administrative services for retail 401(k) retirement plans offered by State Farm Investment Management Corp.

Net Asset Value (NAV) is calculated by adding all of the assets of a Fund, subtracting the Fund’s liabilities, then dividing by the number of outstanding shares.

Money market mutual fund data is not available for funds other than the State Farm Money Market Fund.

Indices

The Russell 2000® Index tracks the common stock performance of the 2,000 smallest U.S. companies in the Russell 3000® Index.

The Russell 2500 Index tracks the 2,500 smallest companies in the Russell 3000 Index.

The Russell 1000 Index is a stock market index that represents the highest-ranking 1,000 stocks in the Russell 3000 Index.

The Russell Midcap Index measures the performance of the mid-cap segment of the US equity market and is a subset of the Russell 1000 Index.

The Dow Jones Industrial Average is an unmanaged average of 30 actively traded stocks.

The NASDAQ Composite is an unmanaged market capitalization weighted index that is designed to represent the performance of the National Market System.

The S&P 500® Index tracks the common stock performance of 500 large U.S. companies.

The S&P 1500 Index is a stock market index of U.S. stock that includes all stocks in the large cap S&P 500 Index, the mid cap S&P 400 Index, and the small cap S&P 600 Index.

The Morgan Stanley Capital International Europe, Australasia and Far East Free (EAFE® Free) Index currently measures the performance of stock markets of Europe, Australia, New Zealand, and the Far East.

The Morgan Stanley Capital International Europe Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Europe.

The Barclays 1-5 Year U.S. Treasury Index measures the performance of short-term U.S. Treasury Securities maturing within one to five years.

The Barclays U.S. Aggregate Bond Index represents debt securities in the U.S. investment grade fixed rate bond market.

The Barclays Municipal Bond Index is an unmanaged index representative of the tax-exempt bond market.

The Barclays High Yield Index includes all fixed income securities having a maximum quality rating from Moody’s Investor Service of Ba1, a minimum amount outstanding of $100 million, and at least one year to maturity.

The Barclays TIPS Index measures the performance of the US Treasury Inflation-Protected Securities (TIPS) market.

The Citigroup 3 Month T-Bill Index is an average of the last 3-month Treasury bill issues (excluding the current month-end bill).

The FTSE EPRA/NAREIT Developed REIT and Non-Reit Index is a subset of the Developed Index, which is designed to track the performance of listed real estate companies and REITS worldwide.

The MSCI ACWI (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.

The Nikkei 225 Index is a price-weighted index comprised of Japan’s top 225 blue-chip companies on the Tokyo Stock Exchange.

The Credit Suisse High Yield Index is designed to mirror the investible universe of the $U.S. – Denominated high yield debt market.

The New York Stock Exchange is considered the largest equities-based exchange in the world based on total market capitalization of its listed securities.

The CBOE 10-Year Treasury Note (TNX) is based on 10 times the yield-to-maturity on the most recently auctioned 10-year Treasury note. The notes are usually auctioned every three months following the refunding cycle: February, May, August and November. The expiration period of these notes is three near-term months plus three additional months from the March quarterly cycle. The aggregate position and exercise limits are 25,000 contracts on the same side of the market.

The Blended Benchmark for the Equity and Bond Fund is a combination of 60% of the S&P 500 Index and 40% of the Barclays U.S. Aggregate Bond Index, rebalanced monthly.

The Blended Benchmark for the LifePath Funds is a combination of the holdings in the Barclays U.S Aggregate Bond Index, Russell 1000 Index, MSCI ACWI ex-U.S. Index, FTSE EPRA/NAREIT Developed Real Estate Index and Barclays TIPS Index. The weightings of the indices are adjusted quarterly to reflect the funds' changing asset allocations over time.

Trademarks

iShares and LifePath®, LifePath 2020®, LifePath 2030®, LifePath 2040®, and LifePath 2050® are all registered trademarks of BlackRock Institutional Trust Company, N.A. All other trademarks, service marks or registered trademarks are the property of their respective owners.

“Standard & Poor’s®”, “S&P®”, “S&P 500®”, “Standard and Poor’s 500”, and “500” are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by State Farm Life Insurance Company, State Farm Life and Accident Assurance Company and the State Farm Variable Product Trust. Neither the Large Cap Equity Index Fund nor the Stock and Bond Balanced Fund is sponsored, endorsed, sold or promoted by Standard & Poor’s, and Standard & Poor’s makes no representation regarding the advisability of investing in the Large Cap Equity Index Fund or the Stock and Bond Balanced Fund.

The Russell 2000® Index is a trademark/service mark, and Russell™ is a trademark of the Frank Russell Company. The Small Cap Equity Index Fund is not sponsored, endorsed, sold or promoted by, nor in any way affiliated with the Frank Russell Company. Frank Russell Company is not responsible for and has not reviewed the Small Cap Equity Index Fund nor any associated literature or publications and Frank Russell Company makes no representation or warranty, express or implied, as to their accuracy, or completeness, or otherwise.

The EAFE® Free Index is a trademark, service mark and the exclusive property of Morgan Stanley Capital International, Inc. (“MSCI”) and its affiliates and has been licensed for use by the State Farm Variable Product Trust (the “Trust”). The International Equity Index Fund (the “Fund”), based on the EAFE® Free Index, has not been passed on by MSCI as to its legality or suitability, and is not issued, sponsored, endorsed, sold or promoted by MSCI. MSCI makes no warranties and bears no liability with respect to the Fund. MSCI has no responsibility for and does not participate in the management of the Fund assets or sale of the Fund shares. The Trust’s Prospectus contains a more detailed description of the limited relationship MSCI has with the Trust and the Fund.

Non-US Residents

Each of the investment products and services referred to on the State Farm Mutual Funds web site is intended to be made available to customers or prospective customers residing in the United States. The customer’s U.S. permanent residence address must be a street address. This web site shall not be considered a solicitation or offering for any investment product or service to any person in any jurisdiction where such solicitation or offer would be unlawful.

Business Continuity Plan

State Farm VP Management Corp. has developed a Business Continuity Plan on how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, download this information (PDF 27 KB) on our business continuity plan.

Need Assistance?

1-800-447-4930 Mutual Funds
1-888-702-2307 Variable Products

State Farm College Savings Plan (529)

Earnings must be used to pay for qualified higher education expenses to be federally tax free. The earnings portion of a non qualified withdrawal will be subject to ordinary income tax at the recipient’s marginal rate and subject to a 10% penalty. State Farm does not provide tax advice. Please consult your tax advisor for specific information about your tax situation, including any state tax consequences of an investment. The availability of such tax or other benefits may be conditioned on meeting certain requirements.

A $70,000 gift is viewed as an accelerated gift over five years. Any other gifts to the same beneficiary by the contributor in that tax year or in any of the succeeding four years may result in a federal gift-tax liability. If the contributor dies within the five-year period, a prorated portion of the contribution may be included in his or her taxable estate.

Contributions can be made until the value or total amount of contributions across all Nebraska program accounts for the beneficiary reaches $360,000. Accounts in excess of this limit can continue to grow through investment earnings realized by the plan, but no additional contributions can be accepted above that limit. This limit is set by the Nebraska State Treasurer and is subject to change.

The plan is intended to operate as a qualified tuition program, pursuant to section 529 of the U.S. Internal Revenue Code.

Participation in the plan does not guarantee that contributions and the investment earnings, if any, will be adequate to cover future tuition and other higher education expenses, or that a beneficiary will be admitted to or permitted to continue to attend an eligible educational institution.

This material is not an offer to sell or a solicitation of an offer to buy any securities. Any offer to sell shares within the plan may only be made by the Enrollment Handbook and Participation Agreement relating to the plan.

Neither the State of Nebraska, the Trust, the Nebraska State Treasurer, the Nebraska Investment Council, First National Bank of Omaha, Oppenheimer nor State Farm, nor any of their respective affiliates, directors, officers or agents shall have any debt or obligation to any contributor, any beneficiary or any other person as a result of the establishment of the plan, nor will these entities assume any risk or liability for mutual funds in which the plan invests.

The State Farm College Savings Plan is subject to enrollment, maintenance, administrative and management fees and expenses.

Investors in the plan do not hold shares of the underlying funds directly, but rather shares in a portfolio of the plan.

The State Farm College Savings Plan (the “plan”) is sponsored by the State of Nebraska and administered by the Nebraska State Treasurer. The plan is established in cooperation with State Farm VP Management Corp. (“State Farm”), the State of Nebraska, and OFI Private Investments Inc. (OFIPI), a subsidiary of OppenheimerFunds, Inc, pursuant to which State Farm offers classes of shares in a series of accounts within the Nebraska Educational Savings Plan Trust (the “Trust” and plan issuer) that are distributed by OppenheimerFunds Distributor, Inc. (OFDI and together with OFIPI, “Oppenheimer”). The Trust offers other accounts that are not affiliated with the plan.

The Nebraska State Treasurer serves as trustee of the plan; OFIPI serves as the investment manager, with the oversight of the Nebraska Investment Council; and servicing agent: OFDI serves as the distributor: First National Bank of Omaha serves as the program manager.

The State Farm College Savings Plan is not insured or guaranteed by State Farm, Oppenheimer, First National Bank of Omaha, the Trust, the State of Nebraska, the Nebraska State Treasurer, the Nebraska Investment Council, any of their respective affiliates, directors, officers or agents or any other entity.

Customized Portfolio Performance Benchmarks

The benchmarks for the Portfolios represent customized composites of market indices for the available Underlying Investments weighted by the relative target asset allocation for such portfolio.

Oppenheimer Capital Appreciation Fund Benchmark: The Russell 1000® Growth Index

The Russell 1000® Growth Index is a market-capitalization weighted index of those firms in the Russell 1000® Index with higher price-to-book ratios and higher forecasted growth values.

Oppenheimer Value Fund Benchmark: The Russell 1000® Value Index

The Russell 1000® Value Index is a market-capitalization weighted index of those firms in the Russell 1000 Index with lower price-to-book ratios and lower forecasted growth values.

Oppenheimer Main Street Small- & Mid-Cap Fund® Benchmark: The Russell 2500® Index

The Russell 2500® Index tracks the common stock performance of the 2,500 smallest U.S. companies in the Russell 3000® Index, which represents approximately 17% of the total capitalization of the Russell 3000 Index.

Oppenheimer International Growth Fund: MSCI EAFE Index

The Morgan Stanley Capital International Europe, Australasia and Far East (EAFE®) Index currently measures the performance of stock markets of Europe, Australia, New Zealand, and the Far East and takes into account local market restrictions on share ownership by foreigners.

State Farm Bond Fund and Oppenheimer Global Strategic Income Fund Benchmark: The Barclays US Aggregate Bond Index

The Barclays US Aggregate Bond Index is a benchmark index composed of US securities in Treasury, Government-Related, Corporate, and Securitized sectors. It includes securities that are of investment-grade quality or better, have at least one year to maturity, and have an outstanding par value of at least $250 million.

Federated US Government Securities Fund 1-3 yrs Benchmark: The Merrill Lynch U.S. Treasuries 1-3 Year Index:

The Merrill Lynch 1-3 Year US Treasury & Agency Index is a subset of The Bank of America Merrill Lynch US Treasury & Agency Index, an unmanaged fixed income index that includes U.S.Treasury fixed income securities (direct sovereign debt of the U.S. Government) in the maturity range equal to one year and less than three years.

Oppenheimer Institutional Money Market Fund Benchmark: iMoney Net First Tier Institutional Index:

The iMoneyNet First Tier Institutional Index (Also known as the MFR First Tier Institutional Index) is a subset of the Money Fund Reports (MFR) All-Taxable universe consisting of funds managed to a “first-tier” standard and which are offered to institutions only. Portfolio Holdings of first-tier funds include U.S. Treasury, U.S. Other, Repos, Time Deposits, Domestic Bank Obligations, Foreign Bank Obligations, First Tier CP, Floating Rate Notes, and AssetBacked Commercial Paper. The Money Fund Report AveragesTM are published by iMoneyNet, Inc. (formerly IBC Financial Data), and reflect yields net of fees and expenses.

Oppenheimer Developing Markets Fund: MSCI Emerging Markets Index:

The MSCI Emerging Markets Index is a capitalization-weighted index of stocks from 26 emerging markets that only includes issues that may be traded by foreign investors.

Investors cannot directly invest either in individual benchmark indices or combinations thereof.

AP2013/04/1060

Not FDIC Insured
  • No Bank Guarantee
  • May Lose Value

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