New 401(k) Savings Plan Transfer Restriction Effective 01/01/2013
The State Farm® 401(k) Savings Plan is designed as a long-term retirement savings vehicle. As such, the investment options are not designed to be appropriate for investors who desire to trade the investments frequently in anticipation of, or in reaction to, short-term market price movements. Frequent trading of investment-option shares may lead to less efficient management of the investment option's portfolio, causing the value of the shares to be diluted for the other plan participants.
To protect the interests of all plan participants, the State Farm 401(k) Savings Plan Administrator adopted an additional restriction in the Frequent Trading Policy with respect to transfers or reallocations into the 2055 and 2060 Portfolios effective January 1, 2013. The Frequent Trading Policy now consists of two components:
- Effective January 1, 2013 you may not transfer or reallocate money into either the 2055 Portfolio or 2060 Portfolio, and
- Effective May 1, 2009, if you transfer or reallocate $5,000 or more from any of the Plan's investment options (excluding the 2055 and 2060 Portfolios mentioned above), you will not be able to transfer or reallocate any money back into that option for 60 calendar days from the transaction date.
If you have any questions about this change, please call the State Farm Benefits Center toll free at 866-935-4015. Customer Service Representatives are available from 7AM to 6PM Central Time, Monday through Friday.