Plan for Your Future with an IRA CD or Money Market IRA
With our Money Market IRA, you can save for retirement while earning a competitive rate. We offer competitive rates on both our fixed-rate IRA CD accounts and our IRA Money Market accounts.
To open your account, call State Farm Bank at 877-SF4-BANK (877-734-2265). If you are deaf, hard of hearing, or do not use your voice to communicate, you may contact us via 711 or other relay services.
Individual Retirement Account (IRA) Certificate of Deposit (CD)
If you're looking for a way to grow your retirement savings, our IRA CD offers a competitive rate and the benefits of saving in a tax-advantaged account. You get a fixed interest rate that's compounded daily over the life of the CD with multiple terms available between 12 to 60 months. Don't lose sleep worrying about your retirement — your IRA CD is FDIC insured up to applicable limits.3
- Open your Individual Retirement Account with $500 and start earning interest.1
- Available as either a Traditional or Roth plan (compare).
- Multiple terms available ranging from 12 months to 60 months.
- Interest is compounded daily.
- Automatic renewal at maturity so you continue to earn interest through your grace period.
- Ten-calendar-day grace period after the maturity date to change the term or withdraw funds without being charged a Bank penalty.2 You may also increase the amount in your CD during the grace period.
- This IRA CD account is FDIC insured up to applicable limits.3
- Paper statements. IRA CD products do not offer online statements at this time.
- For your convenience, distribution payments can be paid by check, or deposited to a State Farm Bank account, electronically transferred to an account at another institution, or wired. Interest payments that are withdrawn from the account are considered distributions and taxes and IRS penalties may apply.
Annual Contribution Limits
The contribution limit for 2018 is $5,500 or 100% of your earned income, whichever is less. The annual contribution limits apply to the combination of all of your Traditional and Roth IRAs.
The contribution limit for 2019 is $6,000 or 100% of your earned income, whichever is less. The annual contribution limits apply to the combination of all of your Traditional and Roth IRAs.
If you are age 50 or older, you may make an additional $1,000 "catch-up" contribution to your IRA.
Prior year Contribution Timing
For a prior year contribution a written tax year designation must be postmarked by the current year’s income tax filing deadline, which is generally April 15th. After that date, State Farm Bank cannot accept a payment for the prior tax year. Contributions received without a tax year designation will be recorded for Current year. To make your deposit, Click here [PDF-167.9KB] to access the Prior year contribution form on our forms and download page.
Adjusted Gross Income
Roth IRA AGI
|Tax Filing Status||Tax Year||Full Contribution||Partial Contribution||Not Eligible|
|Single/Head of Household/Married Filing separately and did not live with your spouse at any time during the year||2019||Less than $122,000||$122,000 to less than $137,000||$137,000 and above|
|Married Filing Jointly or qualifying widow(er)||2019||Less than $193,000||$193,000 to less than $203,000||$203,000 and above|
|Married Filing Separately and lived with your spouse||2019||N/A||$0 to less than $10,000||$10,000 and above|
|Single/Head of Household/Married Filing separately and did not live with your spouse at any time during the year||2018||Less than $120,000||$120,000 to less than $135,000||$135,000 and above|
|Married Filing Jointly or qualifying widow(er)||2018||Less than $189,000||$189,000 to less than $199,000||$199,000 and above|
|Married Filing Separately and lived with your spouse||2018||N/A||$0 to less than $10,000||$10,000 and above|
Modified Adjusted Gross Income
If you are covered by a retirement plan at work, use this table to determine if your income affects the amount of your deduction:
Traditional IRA AGI
|Your Tax Filing Status||Tax Year||Full Deduction Up to Contribution Limit||Partial Deduction||No Deduction|
|Single/Head of Household/Married Filing separately and did not live with your spouse at any time during the year||2019||$64,000 or less||More than $64,000, but less than $74,000||$74,000 or more|
|Married Filing Jointly or qualifying widow(er)||2019||$103,000 or less||More than $103,000 but less than $123,000||$123,000 or more|
|Married Filing Separately||2019||N/A||$0, but less than $10,000||$10,000 or more|
|Single/Head of Household||2018||$63,000 or less||$63,000 but less than $73,000||$73,000 or more|
|Married Filing Jointly||2018||$101,000 or less||$101,000 but less than $121,000||$121,000 or more|
|Married Filing Separately||2018||N/A||More than $0 but less than $10,000||$10,000 or more|
Combined Modified Adjusted Gross Income
If you are not covered by a retirement plan at work but your spouse is, these deduction ranges apply to you:
|Tax Year||Full Deduction||Partial Deduction||No Deduction|
|2019||$193,000 or less||More than $193,000, but less than $203,000||$203,000 or more|
|2018||$189,000 or less||More than $189,000 but less than $199,000||$199,000 or more|
Note: If you are married filing separately with a spouse who is covered by a plan at work, partial deduction is available if the MAGI is less than $10,000 and no deduction if the MAGI is $10,000 or more. For other filing status, including married filing jointly or separately with you and your spouse not covered by a retirement plan, full deduction is available.
You may make only one IRA tax-free rollover in a rolling twelve-month period, regardless of the number of IRAs you own. This includes Traditional, Roth, SEP and SIMPLE IRA's.
The following transactions are not subject to the one rollover per 12-month limitation:
- Trustee to trustee transfers
- Rollovers made from or to an employer retirement plan (i.e. 401(k) to an IRA or IRA to a 401(k))
- Conversions (i.e. funds from Traditional IRA moved directly or within 60 days to Roth IRA)
The individual on the account must have a Social Security Number (SSN), Tax Identification Number (TIN), or Individual Taxpayer Identification Number (ITIN).
Neither State Farm® nor its agents provide tax or legal advice.
1 Refer to the Pricing Schedule for Consumer & Business Deposit Accounts and the Truth in Savings Disclosures for more details. Minimum opening deposit for a regular Fixed Rate CD is $500. The minimum opening deposit for jumbo certificates of deposit is $100,000.
2 You may be subject to taxes at your tax rate and a 10% tax penalty for an early withdrawal.
3 Refer to FDIC for more information.
State Farm (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates) is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites hyperlinked from this page. State Farm has no discretion to alter, update, or control the content on the hyperlinked, third party site. Access to third party sites is at the user's own risk, is being provided for informational purposes only and is not a solicitation to buy or sell any of the products which may be referenced on such third party sites.
State Farm and its affiliates do not provide tax, investment, or legal advice. Federal and state tax laws are subject to change. If tax, investment, or legal advice is required, please seek the services of a licensed professional.
State Farm Bank, F.S.B., Bloomington, Illinois ("Bank"), is a Member FDIC and Equal Housing Lender. NMLS ID 139716. The other products offered by affiliate companies of State Farm Bank are not FDIC insured, not a State Farm Bank obligation or guaranteed by State Farm Bank, and may be subject to investment risk, including possible loss of principal invested. The Bank encourages any interested individual(s) to submit an application for any product(s) offered by the Bank. We also encourage you to obtain information regarding the Bank's underwriting standards for each type of credit or service offered by visiting statefarm.com® or by contacting the Bank at 877-SF4-BANK (877-734-2265). If you are deaf, hard of hearing, or do not use your voice to communicate, you may contact us via 711 or other relay services. To apply for a Bank product, you may also see your participating State Farm Agent.