Secure Your Future with a Roth IRA from State Farm®
A Roth IRA lets you accumulate earnings on a tax-deferred basis and withdraw earnings tax free for qualified distributions. Unlike a Traditional IRA, contributions to a Roth IRA are not deductible on your federal income tax return. However, since you have already paid taxes on the money you've contributed to the account, contribution dollars can be withdrawn at any time without tax consequences1.
You must have earned income (compensation) in order to contribute to a Roth IRA. The annual amount you can contribute to a Roth IRA is solely dependent on your adjusted gross income as determined on your federal income tax return.
The following table should help you determine if you're eligible to contribute to a Roth IRA:
Modified Adjusted Gross Income Limits
|Tax Filing Status||Tax Year||Full Contribution||Partial Contribution||Not Eligible|
|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|
|Single/Head of Household||2015||Less than $116,000||$116,000 to less than $131,000||$131,000 and above|
|Married Filing Jointly||2015||Less than $183,000||$183,000 to less than $193,000||$193,000 and above|
|Married Filing Separately||2015||N/A||$0 to less than $10,000||$10,000 and above|
1 Earnings may be taxed at your tax rate, and a 10% tax penalty for an early withdrawal of these earnings may apply.
For educational purposes only.
1State Farm and its affiliates do not provide tax, investment, or legal advice. Federal and state tax laws are subject to change. If tax, investment, or legal advice is required, please seek the services of a licensed professional.
State Farm Bank, F.S.B., Bloomington, Illinois offers deposit and loan products. Other insurance, securities or investment products are offered by affiliate companies.
State Farm Bank ("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 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.