July 24

0 comments

Retire in Style: How to Withdraw Money from Your Nationwide Retirement Account

By Harrison O'Reill

July 24, 2023


Withdrawing money from your Nationwide retirement account can be a complex process, but it doesn’t have to be. Whether you’re retiring or simply need to access your funds, there are several ways to withdraw money from your account.

So how simple is it? Read through our guide to find out!

Understanding Nationwide Retirement Accounts

If you’re planning for retirement, you may have heard of Nationwide Retirement Accounts. These accounts are designed to help you save for retirement and provide you with a steady source of income in your golden years. Here’s what you need to know about these accounts:

Types of Nationwide Retirement Accounts

Nationwide offers several types of retirement accounts, including:

  • Traditional IRA: This account allows you to make tax-deductible contributions, and your earnings grow tax-deferred until you withdraw them in retirement.
  • Roth IRA: With this account, you make after-tax contributions, but your earnings grow tax-free. You can withdraw your contributions at any time without penalty, and you won’t pay taxes on your withdrawals in retirement.
  • 401(k): This employer-sponsored retirement plan allows you to make pre-tax contributions, and your employer may also contribute to your account. Your earnings grow tax-deferred until you withdraw them in retirement.
  • 403(b): This retirement plan is similar to a 401(k), but it’s offered to employees of non-profit organizations, schools, and government agencies.

Eligibility for Withdrawal

When it comes to withdrawing money from your Nationwide Retirement Account, there are a few things to keep in mind.

First, you must be at least 59 1/2 years old to make penalty-free withdrawals from your account. If you withdraw money before this age, you may be subject to a 10% early withdrawal penalty.

Additionally, you may be required to start taking distributions from your account once you reach age 72. These required minimum distributions (RMDs) are calculated based on your age and the balance in your account, and you’ll need to withdraw a certain amount each year to avoid penalties.

Overall, Nationwide Retirement Accounts can be a great way to save for retirement and ensure that you have a steady source of income in your golden years. Just be sure to understand the rules and eligibility requirements for withdrawals to avoid penalties and maximize your savings.

Withdrawal Options

When you are ready to withdraw money from your Nationwide retirement account, there are several options available to you. Here are the most common ways to withdraw funds:

Online Withdrawal Process

Withdrawing money from your Nationwide retirement account online is a quick and easy process. Simply log in to your account, navigate to the withdrawal section, and follow the prompts to initiate your withdrawal. You can choose to have the funds deposited directly into your bank account or mailed to you in the form of a check.

Phone Withdrawal Process

If you prefer to speak with a representative, you can initiate your withdrawal over the phone. Call Nationwide’s customer service line and provide your account information to get started. The representative will guide you through the process and answer any questions you may have.

Image2
In-Person Withdrawal Process

If you would like to withdraw money in person, you can visit a Nationwide branch location. Bring your account information and a valid form of identification with you. A representative will assist you with the withdrawal process and answer any questions you may have.

Withdrawal Fees and Taxes

It’s important to note that there may be fees associated with withdrawing money from your Nationwide retirement account. These fees can vary depending on the type of account you have and the withdrawal method you choose.

Additionally, any money you withdraw from your retirement account may be subject to taxes. Be sure to consult with a tax professional before making any withdrawals to understand the potential tax implications.

Factors to Consider Before Withdrawing

Before withdrawing from your Nationwide Retirement Account, you should consider your retirement goals and timeline, tax implications, and any penalties for early withdrawal.

It is important to consult with a financial advisor and tax professional to ensure that you are making the best decision for your retirement.

Retirement Goals and Timeline

Before withdrawing from your Nationwide Retirement Account, you should consider your retirement goals and timeline. If you are withdrawing early, you may not have enough time to save up for retirement.

However, if you are withdrawing later, you may have more time to save up. You should also consider your retirement goals, such as whether you plan to travel or buy a second home.

Tax Implications

Another factor to consider before withdrawing from your Nationwide Retirement Account is the tax implications.

Withdrawals from traditional retirement accounts are taxed as ordinary income, and withdrawals from Roth accounts are tax-free. You should consult with a tax professional to determine the tax implications of your withdrawal.

Penalties for Early Withdrawal

If you are withdrawing before the age of 59 1/2, you may be subject to a 10% early withdrawal penalty. However, there are some exceptions to this penalty, such as if you are withdrawing for medical expenses or purchasing your first home. You should consult with a financial advisor to determine if you qualify for any exceptions.

Conclusion

In conclusion, withdrawing money from your Nationwide retirement account can be a simple and straightforward process if you follow the right steps. Remember to consider the tax implications of your withdrawals and take advantage of any available resources or guidance from Nationwide.

To ensure a smooth withdrawal process, be sure to have all necessary documentation and information ready, such as your account number and personal identification. Additionally, consider setting up a direct deposit to your bank account to avoid any delays or complications with receiving your funds.

Overall, withdrawing money from your Nationwide retirement account can be a valuable tool in achieving your financial goals in retirement. By understanding the process and taking the necessary steps, you can feel confident in your ability to access your funds when you need them.

Frequently Asked Questions

Here are some common questions about this topic.

How long does it take to withdraw money from Nationwide Retirement Account?

The time it takes to withdraw money from your Nationwide Retirement Account depends on the type of withdrawal you are making. If you are making a regular withdrawal, it may take up to 10 business days for the funds to be transferred to your bank account.

However, if you are making a hardship withdrawal, it may take longer. You should contact Nationwide Retirement Account customer service for more information.

What is the minimum amount I can withdraw from Nationwide Retirement Account?

The minimum amount you can withdraw from your Nationwide Retirement Account depends on the type of withdrawal you are making. If you are making a regular withdrawal, there is no minimum amount. However, if you are making a hardship withdrawal, the minimum amount is $1,000.

Are there any taxes or penalties for withdrawing money from Nationwide Retirement Account?

Yes, there may be taxes and penalties for withdrawing money from your Nationwide Retirement Account. If you are under the age of 59 ½, you may be subject to a 10% early withdrawal penalty in addition to any taxes owed. You should consult with a tax professional before making any withdrawals to understand the potential tax implications.

Can I withdraw money from Nationwide Retirement Account if I am still employed?

Yes, you may be able to withdraw money from your Nationwide Retirement Account even if you are still employed. However, you should check with your employer and plan administrator to understand the rules and restrictions for making withdrawals while still employed.

Can I withdraw money from Nationwide Retirement Account online?

Yes, you can withdraw money from your Nationwide Retirement Account online. Simply log in to your account and follow the instructions for making a withdrawal. However, if you are making a hardship withdrawal, you may need to submit additional documentation and may not be able to complete the process online.

You might also like