Managing your retirement assets in one place.

Transcription

1 ROLLOVERS TRANSFERS Managing your retirement assets in one place. Consolidate your IRA, 401(k), 403(b) and 457(b) into your Nationwide retirement account

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3 Your retirement income comes from different places. If you ve had more than one employer in your life, you might have a couple of different retirement accounts. A 457(b) here, a 401(k) there. And maybe even an IRA or 403(b). All those retirement accounts are your sources of income when you retire. By combining all your eligible retirement assets into one place, you can more easily and actively manage the money you re potentially accumulating for retirement. Qualified retirement plans, deferred compensation plans and individual retirement accounts are all different, including fees and when you can access funds. Assets rolled over from your account(s) may be subject to surrender charges, other fees and/or a 10% tax penalty if withdrawn before age 59 ½. 3

4 One account means less hassle. That means one statement and less paperwork. That means one point of contact. And one place to more easily keep track of all your accounts. You can move other eligible retirement assets into your Nationwide account, including your: IRA 401(k) 403(b) 457(b) And you don t have to move your money out of your Nationwide account when you retire or separate from service. Your money can stay in your account and have the opportunity to continue growing tax-deferred until you withdraw it. Of course you will pay ordinary income tax when you withdraw your money. Transfer when your current employer offers more than one plan to choose from and you re moving your money from another provider to Nationwide. Rollover when you have available money from a previous employer s plan and want to combine it with your Nationwide account. 4

5 What to expect when you re combining different accounts The process of moving your money from one place to another can seem challenging. But Nationwide will do everything we can to make it as simple as possible for you. Nationwide processes tens of thousands of transfers every year and has worked with many other providers. We ll work to make it hassle-free for you. We ll also help you keep track of all the rules that come along with all of your accounts. Qualified retirement plans, deferred compensation plans and individual retirement accounts are all different, including fees and when you can access funds. Assets rolled over from your account(s) may be subject to surrender charges, other fees and/or a 10% tax penalty if withdrawn before age 59½. 5

6 Transferring or rolling over your assets happens in two simple stages: Moving the funds out of the former provider s account Moving the funds into your Nationwide account How Nationwide helps you: Our Nationwide representatives are knowledgeable and familiar with the requirements from other providers as you move your money We ll contact the other provider with you because they ll require you to be on the line to discuss moving money Nationwide will help you prepare any paperwork, including the transfer forms and a letter telling the other provider that your Nationwide account is open and ready to accept the funds called a Letter of Acceptance we ll work with the other provider and follow up with them to keep the process moving for you 6

7 What to expect from the other provider: It s different for each provider, but Nationwide representatives are familiar with the process and can anticipate what kind of forms you ll be required to complete You might get a phone call from the current provider trying to keep your assets with them this is typical and to keep things simple, always feel free to call your Nationwide representative when you talk with the other provider You might get paperwork in the mail if you do, just call us and we ll help you complete the additional information Sometimes providers will require original documentation (this means they will not accept fax or copy of a document) Not always, but sometimes other providers may require additional identification verification, including a signature guarantee or even a notarized signature from you and sometimes your spouse we ll help you understand what is needed and how to get it HELPFUL TIP Always call your Nationwide representative when you talk with your other provider about transferring or rolling over assets. 7

8 ROLLOVER CHART IRA 1 SEP- IRA SIMPLE IRA ROLL TO ROTH IRA 457 (b) 403 (b) Qualified Plan 2 Designated Roth Account IRA YES YES NO SEP-IRA YES YES NO must must must have separate accounts. must have separate accounts. YES YES NO YES YES NO SIMPLE IRA two years. two years. two years. two years. Must two years must have separate accounts. two years. two years. NO ROLL FROM ROTH IRA NO NO NO YES NO NO NO NO 457 (b) YES YES NO 12/31/07. Must YES YES YES 12/31/10. Must 403 (b) YES YES NO 12/31/07. Must must have. separate accounts. YES YES 9/27/10. Must Qualified Plan YES YES NO 12/31/07. Must must have separate accounts. YES YES 9/27/10. Must Designated Roth Account NO NO NO YES NO NO NO if a direct trustee to trustee transfer. 1 Subject to income limits until December Qualified Plans include, for example, Profit-Sharing, 401(k), Money Purchase, Defined Benefit plans Source: Accessed January 12, 2011 from For more information regarding retirement plans and rollovers, please visit 8

9 Frequently asked questions: Q: A: Are there any charges when I move my money? It all depends on the provider you re moving your money from. Sometimes, there s a Contingent Deferred Sales Charge (CDSC) on some accounts. When you call us, we ll talk with you and your current provider together. We ll help you understand the charges, if any. Nationwide does not charge you a transfer or rollover fee. Q: How long will it take to move my money? A: Q: A: Typically, from the day you call your Nationwide representative, the process takes about a month until your money is in your new Nationwide account. That s because of the back and forth of paperwork and the processing time with your current provider. Nationwide will apply your money to your Nationwide account the day we receive the transfer or rollover funds from your other provider. What happens to my money once its rolled over to Nationwide? When you move other assets to Nationwide, we ll help you manage all your investments in one place. Nationwide offers a variety of investment options so that your incoming assets can be invested in similar types of funds. This is a good conversation to have with your Nationwide representative to help determine what your specific goals and identify an investment strategy that makes sense and is appropriate for your goals. They will help you make informed decisions about how you want your money invested. 9

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11 Questions? Please call NRSFORU ( )

12 We ll help keep it simple. That s our On Your Side service. Talk with your local Nationwide plan rep today and complete the form together. Information provided by representatives is for educational purposes only and is not intended as investment advice. Federal income tax laws are complex and subject to change. The information in this brochure is based on current interpretations of the law and is not guaranteed. Neither Nationwide nor its representatives give legal or tax advice. Please consult your attorney or tax advisor for answers to specific questions. Nationwide Retirement Solutions, Inc. and Nationwide Life Insurance Company (collectively Nationwide ) have endorsement relationships with the National Association of Counties and the International Association of Firefighters-Financial Corporation. More information about the endorsement relationships may be found online at Plan representatives are registered representatives of Nationwide Investment Services Corporation, member FINRA. In MI only: Nationwide Investment Svcs. Corporation Nationwide Retirement Solutions, Inc. All Rights Reserved. Nationwide, Nationwide Financial, the Nationwide framemark and On Your Side are service marks of Nationwide Mutual Insurance Company. NRM-6586AO.3 (11/12)