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2007 Tax Forms

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					                                                 Summary of 2007 Tax Forms                                             Page 1 of 2


Non-Tax-Qualified Accounts
If you maintain a non-tax-qualified account with State Farm Mutual Funds®, you will receive one or more of the following forms,
depending on your account activity throughout 2007:
•   Form 1099-DIV – Dividends and Distributions: Reports all taxable dividends and capital gains ($10.00 or more) distributed to
    you during 2007. This includes distributions paid directly to you in cash, as well as any distributions reinvested to purchase
    additional shares. The information documented on this form is reported to the Internal Revenue Service (IRS) and should be
    used to assist you in completing your federal income tax return. The IRS does not require a Form 1099-DIV to be issued when
    the taxable income distributed to you is less than $10.00 (unless there was withholding); however, you must report all of your
    taxable income.
•   Form 1099-INT – Interest Income: Reports tax-exempt income ($10.00 or more) and private activity bond interest distributed to
    you in 2007 for accounts invested in the Tax Advantaged Bond Fund (Retail Funds) or the Municipal Bond Fund (Associates’
    Funds). Tax-exempt income represents distributions generally exempt from federal income tax. You may need to report this
    amount for informational purposes only on your federal income tax return. You may also be required to report this information for
    state income tax purposes.
•   Form 1099-B – Proceeds From Broker and Barter Exchange Transactions: Reports proceeds from redemptions (sales and
    exchanges) made during 2007. This form will help you determine the gains and losses on the sales and exchanges made during
    the year. The information on this form is reported to the IRS and should be used to assist you in completing your federal
    income tax return. Only Form 1099-B information is reported to the IRS. Average cost information is for informational purposes
    only and is not reported to the IRS.

Tax-Qualified Accounts
If you maintain a tax-qualified [Traditional IRA, Roth IRA, SIMPLE IRA, SEP IRA, Coverdell ESA, Safe Harbor 401(k)*, or 403(b)*]
account with State Farm Mutual Funds, you will receive one or more of the following forms, depending on your account type and
account activity throughout 2007:

•   Form 1099-R – Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts,
    etc.: Reports distributions you received ($10 or more) from your tax-qualified account (excluding qualified tuition programs under
    Section 529, and Coverdell ESAs under Section 530) in 2007. The information on this form is reported to the IRS, and should be
    used to assist you in completing your federal income tax return.
    *For Safe Harbor 401(k) and 403(b) accounts, only distributions are reported. The Plan Administrator or Third-Party
     Administrator reports contributions for these accounts.
•   Form 5498 – IRA Contribution Information: Reports rollovers, contributions, conversions, and recharacterizations made to
    your IRA. The form also reports the Fair Market Value (FMV) of your account as of December 31, 2007. Contributions for the
    2007 tax year can be made to IRAs until April 15, 2008. Therefore, 2007 Forms 5498 for IRAs will not be mailed to
    shareowners until May 2008 and do not need to be filed with your federal income tax return.
•   Form 1099-Q – Payments From Qualified Education Programs (Under Sections 529 and 530): Reports distributions
    (including rollover distributions and transfers out) and removals of excess contributions made from your qualified tuition program
    under Section 529, or your Coverdell ESA under Section 530 in 2007. Form 1099-Q also reports the Fair Market Value (FMV) of
    your account as of December 31, 2007. The information on this form is reported to the IRS, and should be used to assist you in
    completing your federal income tax return.
•   Form 5498-ESA – Coverdell ESA Contribution Information: Reports Coverdell ESA contributions, rollover contributions, and
    trustee-to-trustee transfers in that were received for 2007. Contributions for the 2007 tax year can be made to Coverdell ESAs
    until April 15, 2008. Therefore, 2007 Forms 5498-ESA for Coverdell ESAs will not be mailed to shareowners until April 2008 and
    do not need to be filed with your federal income tax return.


This information should assist an individual who is a citizen or resident of the United States with filing their 2007 federal and
state income tax returns, but it is not intended to serve as legal or tax advice. For any specific tax questions, you should
contact the Internal Revenue Service (IRS) at 1-800-829-1040, or consult your tax advisor.
Tax forms are required to be mailed to shareowners at the end of January 2008. Your individual tax information can be viewed prior to
the actual tax form being mailed when you access your account under the Mutual Funds tab on statefarm.com®. Planning ahead is
important during tax season. Allocate enough time to provide a cushion for unexpected situations that may arise (e.g., mail delays). It
is a good idea to keep all of your year-end records for each year that your account is open. This will allow you to access your
information without any delay. To request a duplicate year-end 2007 record or tax form to be mailed to your address of record, please
call us at 1-800-447-4930. It will take a minimum of five days to receive your duplicate record.
At State Farm Mutual Funds, representatives in our Securities Response Center are ready to assist you. However, due to the
tax season, we anticipate heavy call volumes during the majority of our regular business hours: 8:00 a.m. to 6:00 p.m. CT
Monday through Friday. Your call is important to us, and we look forward to providing you with the best service possible.
Securities Response Center: 1-800-447-4930
                                                    Summary of 2007 Tax Forms                                      Page 2 of 2


Securities through registered representatives of State Farm VP Management Corp., One State Farm Plaza, Bloomington, IL
61710-0001 (1-800-447-4930). Investment return and principal value will fluctuate so that your shares, when redeemed, may
be worth more or less than their original cost.
Securities, insurance and annuity products are not FDIC insured, are not guaranteed by State Farm Bank® and are subject to
investment risk, including possible loss of principal.
In order to comply with Treasury Department regulations, we advise you that this document was prepared to promote and support the
marketing of State Farm Mutual Funds. It is not intended to constitute tax advice, was not written or intended to be used by any
taxpayer for the purpose of avoiding tax penalties that may be imposed on the taxpayer, and cannot be used by any taxpayer for that
purpose. Advice regarding the tax treatment of State Farm Mutual Funds should be sought from an independent tax advisor in light of
your particular circumstances.




State Farm VP Management Corp.
One State Farm Plaza, Bloomington, IL 61710-0001,
1-800-447-4930
statefarm.com®                                            AP2007/11/9426

				
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