Roth IRA – 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However, since you have already paid taxes on the money you've contributed to the account, contribution dollars can be withdrawn at any time without tax consequences1.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:
Adjusted Gross Income Limits
|Tax Filing Status||Tax Year||Full Contribution||Partial Contribution||Not Eligible|
|Single/Head of Household||2015||Up to $116,000||$116,000–$131,000||Above $131,000|
|Married Filing Jointly||2015||Up to $183,000||$183,000–$193,000||Above $193,000|
|Married Filing Separately||2015||N/A||$0–$10,000||Above $10,000|
|Single/Head of Household||2014||Up to $114,000||$114,000–$129,000||Above $129,000|
|Married Filing Jointly||2014||Up to $181,000||$181,000–$191,000||Above $191,000|
|Married Filing Separately||2014||N/A||$0–$10,000||Above $10,000|
1 Earnings may be taxed at your tax rate, and a 10% tax penalty for an early withdrawal of these earnings may apply.
State Farm Bank®, Bloomington, Illinois, 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. Contact State Farm Bank toll-free at 877-SF4-BANK (877-734-2265). Callers who are hearing or speech impaired should dial 711 or use a preferred Telecommunications Relay Services.