Best of America IV by Nationwide Financial is a deferred variable annuity designed for individuals with a 403(b), 401(k), 401(a) or SEP-IRA planning for their retirement.
Best of America IV Annuity Facts
Mortality, maintenance and administrative charges
The annuitant will be charged a 1.25% mortality charge and a 0.05% administrative charge. This brings the total cost to 1.30%. An administrative charge of $30 will be charged annually.
Issue age
For the Best of America IV annuity, the issue age is 0-78 years for annuitants. Owners may be of any age.
Minimum initial investment
- Minimum qualified payment- no minimum
- Minimum non-qualified payment- $1,500
- Subsequent payments-$10
Free withdrawals
Annuitants can withdraw up to 10% of their account values on a non-accumulative basis without incurring withdrawal charges or MVA. However, withdrawals are subject to income tax and distributions prior to age 59.5 might be subject to a 10% penalty in tax. Above the free withdrawal amounts, a surrender charge (CDSC) will be applied. This will start at 7% for the first year afterwards reducing gradually to 0% in the eighth year.
Death benefit
Upon the death of the annuitant, the benefit paid will be the contract value or the return of purchase payments, whichever will be the greater of the two
Waivers
Annuitization can be done after 2 years.
