Nationwide planning to add Roth 457 and In-Plan Roth conversion features
FOR IMMEDIATE RELEASE
October 11, 2010
Erica Lewis (614) 249-0184
Columbus, Ohio — The Small Business Jobs and Credit Act was signed into law Sept. 27, 2010, allowing participants in the public sector to make Roth contributions to their 457 plans and allowing in-plan Roth conversions for qualified rollovers.
Workers participating in a government, state or city deferred compensation plan will now have the opportunity to save for retirement with after-tax dollars, similar to Roth contributions allowable in 401(k) and 403(b) plans. Workers who elect this option will benefit from growing their accounts tax-free, and qualified withdrawals taken during retirement will not be subject to income tax.
The law also includes a provision that allows participants in 401(k), 403(b) and now governmental 457 plans to roll over pretax account balances into a Roth account instead of having to roll those assets into an outside Roth IRA, allowing more money to be saved on an after-tax basis.
“Every organization is made up of a diverse group of people, each with their own individual needs when it comes to saving for retirement,” said Anne Arvia, Nationwide’s senior vice president of retirement plans, commenting on the legislation. “This legislation provides workers with an additional resource when planning for retirement, and gives public-workers access to the same benefits as their counterparts in the private-sector.”
Nationwide Retirement Plans is currently reviewing the new rules and plans to offer education about these new provisions as well as the capability to make Roth 457 contributions and in-plan conversions available to its customers.
Nationwide, based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by A.M. Best. The company provides a full range of personalized insurance and financial services, including auto insurance, motorcycle, boat, homeowners, life insurance, farm, commercial insurance, administrative services, annuities, mortgages, mutual funds, pensions, long-term savings plans and health and productivity services. For more information, visit www.nationwide.com.
The Nationwide Group Retirement Series includes unregistered group fixed and variable annuities and trust programs. The unregistered group fixed and variable annuities are issued by Nationwide Life Insurance Company. Trust programs and trust services are offered by Nationwide Trust Company, FSB a division of Nationwide Bank. Nationwide Investment Services Corporation, member FINRA. In MI only: Nationwide Investment Svcs. Corporation. Nationwide Mutual Insurance Company and Affiliated Companies, Home Office: Columbus, OH 43215-2220.
Life insurance is issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio.
Nationwide, Nationwide Financial, the Nationwide framemark, Nationwide YourLife and On Your Side are service marks of Nationwide Mutual Insurance Company.