Nationwide Bank offers Traditional, Roth and Simplified Employee Pension Plan (SEP) IRAs to help you save for your retirement. You can also open a Coverdell Educational Savings Account (ESA) for school expenses. Learn about our IRA rates and features below.
Save for the Future With an IRA or an ESA From Nationwide Bank®
Both IRAs and ESAs from Nationwide Bank are safe, tax-advantaged ways to maximize your savings. Find the right option for your situation:
Traditional IRA – Your contributions to this retirement plan may be tax-deductible, and any earnings will be tax-deferred until you take money out.
Roth IRA – Your contributions are not tax-deductible, therefore, contribution amounts are not taxed when distributed.
Coverdell ESA – Your contributions are invested for the purpose of funding a student’s elementary, secondary or college education.
SEP IRA - A SEP plan allows employers to contribute to traditional IRAs (SEP-IRAs) set up for employees. A business of any size, even self-employed, can establish a SEP.
Nationwide Bank has a quick and secure application process to make it easy to open an IRA account or Coverdell ESA. Before beginning your application, gather this basic information about yourself.
|Personal information||Beneficiary information||Funding your account|
What is the difference between Traditional and Roth IRAs?
With a Traditional IRA account, you may be eligible for a tax deduction for your contributions. You also have the potential for tax-free compounded growth, but you'll pay taxes when you take money out. With a Roth IRA, your contributions are not tax-deductible, but your earnings are tax-deferred.
If I switch jobs, can I open a rollover IRA with Nationwide Bank?
Yes. If your previous company offered an employer-sponsored retirement plan – such as a 401(k), 403(b) or 457 – you can roll over your qualified retirement plan directly into a Nationwide Bank IRA.
What is a Coverdell Educational Savings Account?
A Coverdell ESA is a way to save money for educational expenses. Earnings in the account grow tax-deferred and can be withdrawn tax-free for qualified educational expenses such as tuition, fees, books, supplies, computer equipment, and room and board. Money withdrawn for any other purpose is taxed and is also subject to a 10% penalty.
What are the rules surrounding the Coverdell ESA?
Here are some of the features of a Coverdell ESA:
- You can set up an account on behalf of any child, not just your own.
- You can contribute for children under 18 years of age.
- You must use the money by the time the child reaches age 30 (or transfer it to another family member).
- You can use the money for qualified expenses at elementary and secondary schools, as well as colleges – whether private, public, secular or religious.
- You can set up an account for the education expenses for a beneficiary with special needs. (Age limitations don't apply).
- Maximum annual contributions are $2,000 per child from all sources.
- You can contribute even if you've reached the maximum contribution level for a Traditional or Roth IRA.
Please consult your tax adviser for answers to your specific tax questions.