Traditional and Roth IRAs
Both Traditional and Roth IRAs let your earnings grow tax-deferred until you make withdrawals. However, there are key differences between the two.
Traditional IRA
- Contributions may be deductible on your federal income tax return
- There are no income limitations for making contributions. However, deductibility is affected by income amounts.
- Earnings are exempt from federal income tax return until withdrawn
- Must start taking withdrawals at age 73
For more information, see Traditional IRA.
Roth IRA
- For federal income tax return purposes, contributions are not tax-deductible, but can be withdrawn any time — tax-free
- Earnings are tax-free for qualified distributions
- No mandatory withdrawals at any age
- Contributions are subject to income limitations
For more information, see Roth IRA.
IRA contribution limits
Funding options/Open an account
Rollover IRA
Learn more at rollovers.
Related links
1 For Traditional IRAs, deductibility of contributions affected by participation in Employer retirement plan. Roth IRA has income phase out limits.
A 10% tax penalty may apply for withdrawals from tax-qualified products before age 59½. Prior to rolling over assets from an employer-sponsored retirement plan into an IRA, it's important that customers understand their options and 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. AP2023/12/1221