Variable Deferred Annuity — Future Income Flex
A Variable Deferred Annuity is a contract with a life insurance company that offers you a way to accumulate savings and defer taxes until you begin withdrawing your money. The State Farm® Variable Deferred Annuity is called Future Income Flex.
The contract is set up so that you contribute money (by paying premiums) during various intervals over a number of years. The premiums you pay go into your choice of underlying stock and bond investment funds (called subaccounts) and/or a fixed account. Your rate of return — and therefore the accumulated value of your premiums — depends on the performance of the underlying accounts you choose.
The insurance company then converts the accumulated value of the premium payments you've made into a series of payments made to you over time. You may choose from a variety of payout options, including a lump-sum payment or the option to receive guaranteed income for life1.
The earnings within a Variable Deferred Annuity are not subject to federal income tax until you withdraw your money2, 3. This allows the account value of the annuity to potentially grow larger than it would if the earnings were taxed each year. It also means you can spread your tax liability over the life of your income payments. Plus, you may move your money between the underlying investment funds without federal income tax implications.
The Interest Advantage Program enables you to explore opportunities in the stock and bond markets, without committing a large portion of your retirement savings all at once.
Please note effective September 27, 2008, State Farm discontinued offering Variable Products. The State Farm Variable Products Processing area continues to service all existing Variable Deferred Annuity-Future Income Flex policies. This includes additional contributions* and transfer/rollovers up to $30,000 annually.
* Tax Qualified plans — under age 50 — $5,500. Age 50 and over — $6,500. Non Tax Qualified plans — $30,000. No contributions are allowed on Tax Sheltered Annuity/403b plans; current SEP plan contributions are limited to $52,000.
Before investing, consider the funds' investment objectives, risks, charges and expenses. Contact State Farm VP Management Corp (888-702-2307) for a prospectus containing this and other information. Read it carefully. AP2014/01/0028
Investing involves risk, including potential for loss.
Variable annuities are long-term investments designed for retirement purposes.
The Interest Advantage Program does not assure a profit or protect against loss.
Variable annuities have fees and charges that include mortality and expense, administrative fees, fund expenses and may include surrender charge, transfer processing fee and additional deposit rider charge.
Past performance is no guarantee of future results.
State Farm VP Management Corp. is a separate entity from those State Farm entities which provide banking and insurance products.
Neither State Farm nor its agents provide investment, tax, or legal advice.
1 Based on the claim-paying ability of the issuing State Farm life insurance company.
2 Withdrawals and distributions of taxable amounts are subject to ordinary income tax and, if made prior to age 59½, may be subject to an additional 10% federal income tax penalty. Dividends and gain from other investments may be taxed at capital gains tax rates (which are usually lower than ordinary income tax rates). The gain portion of variable annuity death benefit proceeds is taxable as ordinary income.
3 A surrender charge may be deducted from a policy withdrawal or surrender made during the first seven policy years. The surrender charge is 7% in the first policy year and declines by 1% in each following policy year until it reaches 0% in the eighth policy year.
State Farm Life Insurance Company (Not licensed in MA, NY or WI)
State Farm Life and Accident Assurance Company (Licensed in NY and WI)
Home Office, Bloomington, Illinois
State Farm VP Management Corp.
(Underwriter and Distributor of Securities Products)
One State Farm Plaza
Bloomington, Illinois 61710-0001
Variable Deferred Annuity policy series 97040, 97090, A97040, and A97090.