State Farm is currently offering a tiered bonus of between $200-$500 in shares for customers who rollover, transfer, or add new external funds to a State Farm Roth or Traditional IRA account in the amount of at least $25,000. State Farm would purchase the mutual fund shares at net asset value and place them in your account.
|Bonus||Deposit||Receive (dollar value of shares)|
|Mutual Fund Shares||$25,000+||$200|
To receive the offer, you must do the following:
- Contact your State Farm representative for help opening a Roth or Traditional account if you don’t already have one or need help determining which State Farm Mutual Funds to purchase.
- If performing a rollover, request a rollover from your prior plan custodian.
- Watch for the confirmation notice from State Farm.
- Within approximately two weeks, receive your bonus in the form of additional shares that will be bought and placed in your IRA account.
- Offer valid through 6/30/2015.
- The account must be funded with the required deposits within 90 days from the date the first qualifying rollover or transfer purchase is received by State Farm.
- Funds must be external to State Farm.
- The minimum deposits have to remain in the account for at least one year to avoid being charged for the value of the shares.
- Customers who qualify for a net asset value purchase because of their affiliation to State Farm are not eligible for this bonus.
- Investing involves risk.
As this bonus is in the form of shares as opposed to cash, your incentive to participate is likely reduced unless you were already inclined toward opening an IRA with State Farm. Existing State Farm customers may be the most inclined to take advantage of an additional arm of their services.
Because the offer stipulates that you must maintain the qualifying funds in the IRA for one year, before exercising this offer, it would be wise to consult State Farm for insight into their selection of mutual funds to ensure that it offers the variety that is suited to your investment goals.
The bonus tier structure also dictates a comparatively high investment of at least $25,000 to receive the lowest tier bonus of $200 in shares. If you are seeking to invest far less, such as <$5,000, and you would prefer to receive a cash bonus rather than a share bonus, see the optionsXpress, Motif Investing, and Capital One Sharebuilder offers for other alternatives that may suit your goals and requirements.
Do you have experience with State Farm IRAs? Let us know in the comments below!