Have you recently left a job and are wondering what to do with your Nationwide 401(k)? Don't just let it sit there! Rolling over your 401(k) can be a smart move to maintain control over your retirement savings, potentially access a wider range of investment options, and keep your money growing tax-deferred. This comprehensive guide will walk you through the process of rolling over your Nationwide 401(k) step by step, ensuring you make informed decisions.
Understanding Your Rollover Options
Before diving into the "how-to," it's crucial to understand the main ways you can roll over your Nationwide 401(k). Each option has its own implications for taxes, fees, and investment choices.
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| How To Rollover Nationwide 401k |
Option 1: Rolling Over to a New Employer's 401(k)
If your new employer offers a 401(k) plan, you might be able to roll your Nationwide 401(k) directly into it. This is often a good choice if you're happy with your new employer's plan, its investment options, and its fee structure. It also keeps all your retirement savings in one place, simplifying management.
Option 2: Rolling Over to an Individual Retirement Account (IRA)
Many people choose to roll over their old 401(k) into an IRA (Traditional or Roth). This option generally provides much greater control over your investments, with a broader selection of funds, ETFs, stocks, and other securities. It can also offer more flexibility in terms of fees and withdrawal options in retirement.
Option 3: Leaving Your Money in Your Old Nationwide 401(k)
In some cases, you might be able to leave your money in your former employer's Nationwide 401(k) plan. This can be an option if your balance is above a certain threshold (often $5,000) and you're satisfied with the plan's performance, fees, and investment choices. However, you won't be able to make new contributions, and you might have limited access to customer service compared to an active participant.
Option 4: Cashing Out (Generally NOT Recommended!)
While it's an option, cashing out your 401(k) is almost never recommended before retirement age. Any money you withdraw will be subject to income tax, and if you're under 59½, you'll likely face an additional 10% early withdrawal penalty. This can significantly reduce your retirement savings and trigger a substantial tax bill.
Tip: Review key points when done.
Step-by-Step Guide to Rolling Over Your Nationwide 401(k)
Let's break down the process of rolling over your Nationwide 401(k) into a new account. This guide focuses on a direct rollover, which is the safest and most common method to avoid taxes and penalties.
Step 1: Assess Your Situation and Choose Your Destination
This is where you come in! Before you do anything else, take a moment to consider your financial goals and what you want out of your retirement savings.
- Where are you in your career? Are you starting a new job with a great 401(k)? Are you self-employed now?
- What are your investment preferences? Do you want more control over your investments, or are you comfortable with a curated selection?
- What are your fee sensitivities? Are you looking for the lowest possible fees, or are you willing to pay more for specific features or advice?
Based on your answers, decide whether rolling over to a new employer's 401(k) or an IRA (Traditional or Roth) is the best fit for you. This foundational decision will guide the rest of the process.
Sub-Step 1.1: Consider the Pros and Cons of Each Rollover Type
- To a New Employer's 401(k):
- Pros: Simplicity, potentially lower fees if your new plan is good, continued payroll deductions if you consolidate, protection from creditors (ERISA plans).
- Cons: Limited investment options, plan administrator changes, potential for higher fees than an IRA, access to funds might be restricted by employer policies.
- To an IRA:
- Pros: Vast investment selection, potentially lower fees than some 401(k)s, easier to manage if you change jobs frequently, potential for greater control and customization, no RMDs (Required Minimum Distributions) until age 73 for Traditional IRAs (and none for Roth IRAs for the original owner).
- Cons: Less creditor protection than 401(k)s (state-dependent), you're responsible for all investment decisions, potential for higher fees if you're not careful.
Sub-Step 1.2: Decide Between a Traditional IRA and a Roth IRA
If you're rolling over to an IRA, you'll need to choose between a Traditional and a Roth. This depends on your tax situation.
- Traditional IRA: Funds are typically pre-tax, so your money continues to grow tax-deferred, and withdrawals in retirement will be taxed as ordinary income. If your Nationwide 401(k) contributions were pre-tax, a Traditional IRA rollover will keep them tax-deferred.
- Roth IRA: Funds are after-tax, meaning your contributions grow tax-free, and qualified withdrawals in retirement are also tax-free. If you roll over pre-tax money from a Nationwide 401(k) to a Roth IRA, you'll have to pay income taxes on the rolled-over amount in the year of the conversion. This can be a significant tax bill, so consult with a tax advisor! However, if your Nationwide 401(k) had a Roth component, you can roll that directly into a Roth IRA without immediate tax consequences.
Step 2: Open Your New Retirement Account (If You Don't Have One)
Once you've decided on your destination, the next logical step is to set up the account where your Nationwide 401(k) funds will land.
QuickTip: Re-reading helps retention.
- For a New Employer's 401(k): Contact your new employer's HR or benefits department. They will provide you with information on how to enroll in their plan and initiate a rollover. You'll need their plan name, account number, and any specific instructions they have for incoming rollovers.
- For an IRA: Choose a financial institution (brokerage firm, bank, or mutual fund company) to open your IRA. Many reputable firms offer rollover IRA accounts with no annual fees. Research their investment options, fees, and customer service. Once you've chosen, follow their online or in-person application process to open a new Traditional or Roth IRA. Ensure you clearly indicate it's a "rollover IRA" if that option is available.
Step 3: Contact Nationwide to Initiate the Rollover
This is the core of the process. You'll need to reach out to Nationwide to request a distribution from your 401(k) and specify it as a direct rollover.
Sub-Step 3.1: Gather Necessary Information
Before calling Nationwide, have the following information readily available:
- Your Nationwide 401(k) account number.
- Your personal identification information (SSN, date of birth, etc.).
- The exact name and address of your new retirement account provider.
- The account number of your new retirement account.
- For a new 401(k): The new plan's name, plan number, and the contact information for the plan administrator (if different from the new provider).
- For an IRA: The type of IRA (Traditional or Roth), and instructions on how the check should be made payable (usually "FBO [Your Name]" for your new financial institution). Nationwide may also need ACH/wire transfer instructions if they offer that option.
Sub-Step 3.2: Call Nationwide Retirement Solutions Customer Service
- The primary contact number for Nationwide Retirement Solutions is 1-877-677-3678.
- When you call, clearly state that you wish to initiate a direct rollover of your 401(k) balance. Emphasize "direct rollover" to avoid any withholding or penalties.
- They will guide you through their specific process, which usually involves completing a "Participant Withdrawal/Direct Rollover Request" form or similar documentation.
- Nationwide may ask for a "Letter of Acceptance" from your new financial institution. Many brokerage firms can provide this if needed.
Sub-Step 3.3: Complete and Submit Nationwide's Rollover Forms
Nationwide will likely send you forms to complete. Carefully review these forms to ensure:
- You've selected the "Direct Rollover" option.
- The payee information for your new account is accurate (e.g., "FBO [Your Name]" for your new brokerage, with their address and account number).
- All required fields are filled out, and your signature is provided where necessary.
- If your old 401(k) included Roth contributions, ensure the forms correctly handle the Roth portion to avoid unnecessary taxation.
Pro Tip: Make copies of all forms for your records before sending them.
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Step 4: Facilitate the Transfer of Funds
Once Nationwide processes your request, they will typically send the funds directly to your new retirement account provider. This is the "trustee-to-trustee" transfer.
Tip: Keep your attention on the main thread.
- Check by Mail: Most commonly, Nationwide will issue a check made payable to your new IRA custodian or your new employer's 401(k) plan. This check will usually be sent to the address you provided for the new institution.
- Electronic Transfer (Less Common for 401k Rollovers): In some cases, Nationwide might be able to facilitate an electronic transfer (wire or ACH). If this is an option, ensure you have the correct wiring instructions from your new institution.
Important Note on Indirect Rollovers: If, for some reason, Nationwide sends the check to you directly (an indirect rollover), you have 60 days from the date you receive the funds to deposit the entire amount into your new retirement account. If you fail to deposit the full amount within this 60-day window, the IRS will consider it a taxable distribution, and you'll owe income tax and potentially the 10% early withdrawal penalty. Furthermore, Nationwide will be required to withhold 20% of the distribution for federal taxes in an indirect rollover, which you'll need to make up out of your own pocket to roll over the full amount. For these reasons, direct rollovers are overwhelmingly preferred.
Step 5: Confirm the Rollover and Invest Your Funds
After Nationwide initiates the transfer, it's essential to confirm that the funds have successfully arrived in your new account.
- Monitor your new account: Log in to your new IRA or 401(k) account online or contact the new provider to confirm receipt of the funds. This may take anywhere from a few days to a few weeks.
- Invest your money: Once the funds are in your new account, they might initially be held in a money market fund or cash equivalent. You'll need to actively choose and allocate your investments within the new account according to your financial goals and risk tolerance. If you rolled into a new employer's 401(k), the plan's default investments might apply, or you may need to make specific investment elections.
Congratulations! You've successfully rolled over your Nationwide 401(k)!
Important Considerations and Tips
- Taxes: Always consult with a tax professional or financial advisor before initiating a rollover, especially if you're considering a Roth conversion or an indirect rollover. They can help you understand the tax implications for your specific situation.
- Fees: Be aware of any fees associated with the rollover, both from Nationwide and your new provider. Some plans may charge a distribution fee or account closing fee.
- Required Minimum Distributions (RMDs): If you are already subject to RMDs (typically starting at age 73), ensure you take your RMD from your Nationwide 401(k) before initiating the rollover for that year. Rolling over the entire balance before taking your RMD can complicate matters.
- Investment Holdings: If your Nationwide 401(k) held company stock or unique investments, discuss with Nationwide and your new provider how these assets will be handled during the rollover.
- Beneficiaries: Remember to update your beneficiaries on your new retirement account after the rollover is complete.
10 Related FAQ Questions
How to Check My Nationwide 401(k) Balance?
You can typically check your Nationwide 401(k) balance by logging into your account on the Nationwide Retirement Solutions website or by calling their customer service at 1-877-677-3678. Your periodic account statements will also show your balance.
How to Get My Nationwide 401(k) Account Number?
Your Nationwide 401(k) account number can usually be found on your account statements, online portal, or by contacting Nationwide Retirement Solutions customer service directly.
Tip: Write down what you learned.
How to Find Nationwide 401(k) Rollover Forms?
Nationwide's rollover forms (such as the "Participant Withdrawal/Direct Rollover Request") are generally available through their website under the "Forms" or "Administrative" section, or they can be provided to you by their customer service team when you initiate a rollover request.
How to Avoid Taxes on a Nationwide 401(k) Rollover?
To avoid taxes on a Nationwide 401(k) rollover, you must perform a direct rollover where the funds are transferred directly from Nationwide to your new qualified retirement account (IRA or new 401(k) plan). This ensures the money never passes through your hands and remains tax-deferred.
How to Roll Over a Nationwide Roth 401(k)?
If your Nationwide 401(k) includes Roth contributions, you can roll them over directly into a Roth IRA or a Roth 401(k) at your new employer without incurring immediate taxes. Be sure to specify that it's a Roth rollover on the forms.
How to Handle a Loan from My Nationwide 401(k) During a Rollover?
If you have an outstanding loan against your Nationwide 401(k), it must typically be paid off before you can roll over the account. If the loan is not repaid, the outstanding balance will be considered a taxable distribution and potentially subject to early withdrawal penalties. Contact Nationwide to understand their specific policies on 401(k) loans during rollovers.
How to Roll Over a Nationwide 401(k) to Fidelity (or another specific brokerage)?
To roll over your Nationwide 401(k) to a specific brokerage like Fidelity, you'll first open a rollover IRA (Traditional or Roth) with Fidelity. Then, you'll contact Nationwide and instruct them to make the check payable to "Fidelity Investments FBO [Your Name]" and send it to Fidelity's designated address for rollovers. Fidelity may also provide a "Letter of Acceptance" if Nationwide requires it.
How to Initiate an Indirect Rollover from Nationwide 401(k)?
While generally not recommended, if you opt for an indirect rollover, Nationwide will send the funds to you directly, minus a mandatory 20% federal tax withholding. You then have 60 days from receiving the check to deposit the full amount (including the 20% withheld) into your new qualified retirement account to avoid taxes and penalties. You would then recover the withheld 20% when you file your income taxes.
How to Determine if I Should Roll Over to an IRA or New 401(k)?
Consider factors like the investment options and fees of your new employer's 401(k) versus an IRA. An IRA typically offers broader investment choices and more control, while a new 401(k) can offer simplicity and potential creditor protection. Consulting a financial advisor can help you make this decision based on your individual circumstances.
How to Contact Nationwide for Rollover Assistance?
For assistance with rolling over your Nationwide 401(k), you can call Nationwide Retirement Solutions customer service at 1-877-677-3678. Their hours are typically Monday-Friday, 8 a.m. - 11 p.m. ET, and Saturday, 9 a.m. - 6 p.m. ET. You can also find contact information and forms on their website.
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