MUTUAL FUNDS

Rollover Your Retirement Account Into a State Farm® Transfer IRA

Transfer an IRA Without Penalties

If you currently have assets in an IRA with another financial institution, you can have those assets transferred into a new or existing IRA generally without incurring any taxes or tax penalties by completing the appropriate form. Generally, a transfer must be between like retirement accounts (Roth IRA to Roth IRA or Traditional IRA to Traditional IRA). However, SEP IRA to Traditional IRA is also considered a transfer, as is SIMPLE IRA to Traditional IRA after the SIMPLE IRA has been in force for at least two years. Here's another way to look at it: the type of plan isn't changing, the type of funding is.

Why Transfer Your IRA?

Expand your investment selection. The wide range of choices for a State Farm Traditional IRA, for example, provides investment flexibility to diversify your financial approach. Learn more on funding an IRA.

Adapt to new circumstances. A retirement account transfer is one way to adjust your investment mix to reflect changes in your investment goals, time frame, or performance expectations. And there is no limit to the amount of money or number of transfers that may be requested for an IRA.

Work with one provider for multiple financial solutions. An IRA transfer lets you consolidate your savings with your State Farm agent, so you can continue working with someone who's already familiar with your needs.

Consolidate and manage your retirement assets. The more accounts you have, the more difficult it is to keep track of your money. Consolidating your assets can make it simpler to track balances and monitor your withdrawals.

Characteristics of an IRA Transfer

No IRA reporting is required by either the transferring or receiving company.

An IRA transfer is not a distribution, so tax withholding is not necessary.

The number of transfers a holder may request is unlimited for tax reporting purposes and may be for all or just a portion of the money.

An IRA transfer is not a withdrawal. That means the IRS does not impose the usual distribution rules (and taxation), because the money is not used by the holder.

Risk Disclosures

Investing involves risk, including potential for loss.

Diversification does not assure a profit or protect against loss.

Asset allocation does not assure a profit or protect against loss.

When rolling over a 401(k) into an IRA it's important to 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.

AP2013/11/2025

Not FDIC Insured

  • No Bank Guarantee
  • May Lose Value