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The CARES Act waives the 2020 Required Minimum Distribution (RMD) for IRA holders and participants in defined contribution qualified retirement plans. This includes RMDs for the 2020 calendar tax year, as well as 2019 first-time RMDs required to be taken by April 1, 2020 that were not already taken in 2019. The waiver for 2020 also extends to beneficiaries, including those who have elected to deplete the account under the five-year rule, in effect extending the period to six years.
When you contribute to a State Farm® Individual Retirement Account, 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 Individual Retirement Account 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.
For more information, see Traditional IRA.
For more information, see Roth IRA.
The contribution limit for 2020 and 2021 is $6,000 or 100% of your earned income, whichever is less. The annual contribution limits apply to the combination of all of your Traditional and Roth IRAs.
If you are age 50 or older, you may make an additional $1,000 "catch-up" contribution to your IRA.
Have you ever changed jobs? Are between jobs? Or are retired?
If you have money in a retirement plan from a previous employer, you may be able to roll it over to a State Farm IRA without paying federal income taxes or penalty taxes. This may make it easier to manage your savings.
Learn more at Rollovers.
Mutual Funds Risk Disclosures
A 10% 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 distributed by State Farm® VP Management Corp.
Securities 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® and/or unaffiliated entities which provide banking and insurance products.