Would You Like a Break From Taxes Now or Later?

Can you imagine being able to protect the money you invest from taxes? With an IRA, it's absolutely possible. The type of IRA you choose will determine the type of tax break you’ll get.

So which IRA should you choose?

• Traditional IRAs may offer tax deductions on contributions and allow your investments to grow income tax free, but you pay taxes when you make a withdrawal
• Roth IRAs offer tax-free income when you withdraw it, but you pay taxes up front
• Rollover IRA let you consolidate your retirement accounts without losing the tax advantages

To avoid tax withholding and possible penalties, be sure any loans on the retirement plan are paid off and your current plan custodian is instructed to send funds directly to your new rollover IRA custodian. Also know that neither Nationwide^® nor its representatives provide tax or legal advice. You should consult with an attorney or other professional advisor for such advice.

Undecided?

Each of these options has advantages and disadvantages. You should discuss each of them with an investment professional before making a decision.

Unless you are making withdrawals for qualified expenses, withdrawing any or all of the funds will trigger a 20% mandatory tax withholding and a 10% early withdrawal penalty, if you are under age 59½, in addition to paying ordinary income tax.

Not a deposit • Not FDIC or NCUSIF insured • Not guaranteed by the institution • Not insured by any federal government agency • May lose value