Plan for Your Future with an IRA CD or Money Market IRA
An Individual Retirement Account (IRA) from State Farm Bank® can help you plan for tomorrow and give you peace of mind that your investments will be there when you need them. We offer competitive rates on both our fixed-rate IRA CD accounts and our IRA money market accounts.
To open your account, contact a State Farm® agent or call State Farm Bank at 877-SF4-BANK (877-734-2265). Callers who are hearing or speech impaired should dial 711 or use a preferred Telecommunications Relay Service.
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, peace of mind, 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, we have a product that will meet your needs. 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 investment 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
- Complimentary 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. Note: Effective October 29, 2016 requests for electronic deposit at another financial institution will only be available for fixed payment amounts. Interest payments that are withdrawn from the account are considered distributions and taxes and IRS penalties may apply.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 2016 and 2017 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.
If you are age 50 or older, you may make an additional $1,000 "catch-up" contribution to your IRA.
Adjusted Gross Income
Roth IRA AGI
|Tax Filing Status||Tax Year||Full Contribution||Partial Contribution||Not Eligible|
|Single/Head of Household||2017||Less than $118,000||$118,000 to less than $133,000||$133,000 and above|
|Married Filing Jointly||2017||Less than $186,000||$186,000 to less than $196,000||$196,000 and above|
|Married Filing Separately||2017||N/A||$0 to less than $10,000||$10,000 and above|
|Single/Head of Household||2016||Less than $117,000||$117,000 to less than $132,000||$132,000 and above|
|Married Filing Jointly||2016||Less than $184,000||$184,000 to less than $194,000||$194,000 and above|
|Married Filing Separately||2016||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||2017||Less than $62,000||$62,000 but less than $72,000||$72,000 or more|
|Married Filing Jointly||2017||Less than $99,000||$99,000 but less than $119,000||$119,000 or more|
|Married Filing Separately||2017||N/A||More than $0 but less than $10,000||$10,000 or more|
|Single/Head of Household||2016||Less than $61,000||$61,000 but less than $71,000||$71,000 or more|
|Married Filing Jointly||2016||Less than $98,000||$98,000 but less than $118,000||$118,000 or more|
|Married Filing Separately||2016||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 Up to Contribution Limit||Partial Deduction||No Deduction|
|2017||Less than $186,000||$186,000 but less than $196,000||$196,000 or more|
|2016||Less than $184,000||$184,000 but less than $194,000||$194,000 or more|
|2016 and 2017 married filing separately with a spouse who is covered by a plan at work||less than $10,000||a partial deduction|
|$10,000 or more||no deduction|
Rollover rules effective January 1, 2015
The IRS has made a change to the rollover rule. Beginning January 1, 2015 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. Consult a tax or legal advisor regarding your personal circumstances.
1Refer 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.
4 If both spouses are active participants in an employer's retirement plan. Different phase out applies if only one spouse is an active participant.
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). Callers who are hearing or speech impaired should dial 711 or use a preferred Telecommunications Relay Service. To apply for a Bank product, you may also see your participating State Farm agent.