Retirement Planning for All of Life's Stages

Retirement should be about enjoying yourself, not second-guessing your retirement planning. That's why State Farm® is here to help. Our agents, with the support of an experienced team of financial professionals, can work with you one-on-one to set goals, establish a saving and investment strategy, and be there for you year after year so you can stay on track.

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Retirement FAQ

What Can I Do to Improve My Chances of Retiring Comfortably?

If you can be disciplined about investing for retirement, you'll have the opportunity to accumulate money over time and be better prepared for your retirement years. Develop a mindset of paying yourself in addition to paying your bills. By doing so, you should have a steady flow of money going to work for you.

What is the Difference Between a Traditional IRA and a Roth IRA?

The main difference between a Traditional and a Roth IRA is how they are taxed. With a Traditional IRA, contributions may be tax deductible, but you pay taxes on those contributions and earnings when you withdraw the money in retirement. With a Roth IRA, contributions are not tax deductible, but withdrawals are not taxable if certain conditions are met.

What are the Tax Penalties for Early Withdrawal from an IRA?

IRAs are designed to help people save for retirement. To help ensure that the money goes toward supporting people after they stop working, the law imposes a 10 percent tax penalty on early withdrawals. Take your money out before you turn 591/2, and you generally will incur the penalty tax – unless your withdrawal meets one of the standard exceptions.

What is the Annual Deadline for Contributing to My Traditional or Roth IRA?

You can make annual contributions to a traditional or Roth IRA from January 1 through the tax-filing deadline (excluding extensions) for the contribution year, generally April 15. For example, year 2015 contributions can be made from January 1, 2015 through April 15, 2016.

What's the Difference Between a Transfer and a Rollover?

A transfer is a movement of funds between like-type plans (IRA to IRA, SEP to SEP, Roth to Roth). A rollover is generally a movement of funds from one type of plan (e.g., 401k) to another type of plan (e.g., IRA).

State Farm® is making changes to how it offers most investment products

State Farm will make changes in the way the company, and its agents, offer certain retail investment products.

Beginning in 2017, State Farm will offer mutual funds, variable products and tax-qualified bank deposit products through a self-directed customer call center. State Farm agents can continue to serve customers for all other insurance and financial services needs.

At this time, there is no customer action necessary. State Farm will contact customers regarding any changes or actions necessary in the future.


Before investing, consider the funds' investment objectives, risks, charges and expenses. Contact State Farm VP Management Corp (800-447-4930) for a prospectus or summary prospectus containing this and other information. Read it carefully.

Securities, insurance and annuity products are not FDIC insured, are not bank guaranteed and are subject to investment risk, including possible loss of principal.

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.

A 10 percent tax penalty may apply for withdrawls from tax-qualified products before age 591/2.

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.