When you contribute to a State Farm™ IRA, your money grows tax deferred. This gives your retirement savings the potential to grow faster than if in a taxable account. Plus, you may contribute to a State Farm IRA even if you participate in a retirement program at work.*
Both Traditional and Roth IRAs let your earnings grow tax-deferred until you make withdrawals. However, there are key differences between the two.
- Contributions may be deductible on your federal income tax return
- There are no income limitations for making contributions. However, deductibility is affected by income amounts.
- Earnings are exempt from federal income tax return until withdrawn
- Must start taking withdrawals at age 70½
For more information, see Traditional IRA.
- For federal income tax return purposes, contributions are not tax-deductible, but can be withdrawn any time — tax-free
- Earnings are tax-free for qualified distributions
- No mandatory withdrawals at any age
- Contributions are subject to income limitations
For more information, see Roth IRA.
Mutual Funds Risk Disclosures
A 10 percent tax penalty may apply for withdrawals from tax-qualified products before age 59½.
* For Traditional IRAs, deductibility of contributions affected by participation in Employer retirement plan. Roth IRA has income phase out limits.
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.
Neither State Farm nor its agents provide tax or legal advice.
Securities issued by State Farm VP Management Corp. For more information, call 800-447-4930.
State Farm VP Management Corp. is a separate entity from those State Farm entities which provide banking and insurance products.
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.