Benefits of a rollover
- Maintain tax-deferred status and avoid paying a 10% tax penalty. This can be done by moving money directly from a previous employer's plan to a State Farm® Traditional IRA.
- Watch your savings continue to grow-tax deferred. This means that no amount in the IRA will be taxable until withdrawn from the IRA. Tax-deferred growth enables money to grow faster than it would in a taxable account.
- Consolidate and manage retirement assets.
Disadvantages of rolling over an IRA
- You may be eligible for favorable tax treatment withdrawals if your 401(k) is invested in company stock.
- A 401(k) may provide greater protection from lawsuits and creditors.
- You may be able to get a loan from an employer-sponsored 401(k) account, but not from an IRA.
Related links
Before investing, consider the funds' investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses which can be obtained by visiting lrrvermont.com. Read it carefully. 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.
Neither State Farm® nor its agents provide tax or legal advice. AP2023/05/0510