MUTUAL FUNDS

What is a Rollover?

A rollover is when money moves from a qualified retirement plan, such as an employer-sponsored 401(k) plan, to a Traditional IRA. You may be eligible for a rollover if you've changed or are between jobs, or have retired.

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Benefits of a Rollover

  • Avoid paying current federal income taxes and a 10% tax penalty. This can be done by moving money directly from a previous employer's plan to a State Farm® Traditional IRA.
  • Watch your savings continue to grow-tax deferred. This means that no amount in the IRA will be taxable until withdrawn from the IRA. Tax-deferred growth enables money to grow faster than it would in a taxable account.
  • Consolidate and manage retirement assets. Consolidating your accounts into a State Farm Traditional IRA can make it easier to track balances and monitor withdrawals.
  • Expand investment selection. With State Farm Mutual Funds®, you have access to 15 funds options and an investment team who is dedicated to making each of our mutual funds a highly competitive and rewarding long-term investment for our shareholders.

Disadvantages of rolling over an IRA

  • You may be eligible for favorable tax treatment withdrawals if your 401(k) is invested in company stock.
  • A 401(k) may provide greater protection from lawsuits and creditor.
  • You may be able to get a loan from an employer-sponsored 401(k) account, but not from an IRA.

Your State Farm agent can help you make the rollover process easier by:

  • Creating a retirement plan that meets your needs;
  • Opening an IRA account, if you don't already have one;
  • Contacting your current account manager for requirements;
  • Completing any required paperwork;
  • Following up on the status of your State Farm IRA.

Now is a great time to speak with a registered State Farm agent to find out if a 401(k) rollover is the right option for you. Call, click, or stop by an agent's office.

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Risk Disclosures

Investing involves risk, including potential for loss.

A 10% tax penalty may apply for withdrawals from tax-qualified products before age 59½.

Prior to rolling over assets from an employer-sponsored retirement plan into an IRA, it's important that customers understand their options and do a full comparison on the differences in the guarantees and protections offered by each respective type of account as well as the differences in liquidity/loans, types of investments, fees, and any potential penalties.

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

AP2014/12/2153

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  • No Bank Guarantee
  • May Lose Value