Potential purchasers seeking to use an annuity to fund a qualified or other tax-advantaged retirement plan should understand that the use of an annuity for such purpose is not necessary in order to defer taxation of investment earnings. Underlying investment options discussed here are only available as investment options in variable insurance contracts issued by life insurance companies. They are not offered directly to the general public.
Before purchasing a variable annuity, you should carefully consider the investment objectives, risks, charges and expenses of the annuity and its underlying investment options. This and other important information is contained in the product prospectus. Underlying fund prospectuses can be obtained from your investment professional or by contacting Nationwide®. Read the prospectus carefully before you make a purchase.
You should know that an annuity contains guarantees and protections that are subject to the issuing insurance company’s ability to pay for them. But these guarantees don’t apply to any variable accounts that are subject to investment risk, including possible loss of your principal.
Please remember, variable annuities are long-term investment vehicles and are not intended to replace emergency funds or to fund short-term savings goal. Investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved. They have fees and charges that include mortality and expense, administrative fees, contract fees and the expense of the underlying investment options.
Taxable amounts withdrawn prior to age 59½ may be subject to a 10% federal tax penalty. Withdrawals will reduce the value of the death benefit and any optional benefits. Any income benefits that an annuity provides are subject to the terms, limitations, and restrictions of the annuity contract.
Please keep in mind that annuities have limitations. They are long-term vehicles designed for retirement purposes. They are not intended to replace emergency funds, to be used as income for day-to-day expenses, or to fund short-term savings goals.
Guarantees are subject to the claims paying ability of Nationwide Life Insurance Company.
Neither Nationwide nor our representatives give legal or tax advice, so consult your attorney, legal or tax advisor about these questions.