The Nationwide Platinum Edge is a flexible payment modified guaranteed annuity. The product is targeted at clients looking for guaranteed rates of return and the added flexibility to divide their money among various guarantee periods. The annuity can be taken under various plan types such as IRS, IRAA rollover, SEP IRA, CRT, Simple IRA and Investment Only.
Nationwide Platinum Edge Details
Issue age
The issue age is 0-85 years for annuitants. Owners may be of any age.
Minimum initial investment
- Minimum qualified payment- $10,000
- Minimum non-qualified payment- $2,000
- Subsequent payments-$1,000 and $100 for electronic transfers
Account options
Interest rate guarantee periods for this annuity include 3,4,5,6,7,8,9 and 10 years. The periods also correspond to a similar surrender charge period. The interest rate only applies if the annuitant holds the investment to the end of the period.
Free withdrawals
With the Nationwide Platinum Edge annuity from Nationwide Financial, investors 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 5% for the first year afterward reducing gradually to 0% in the last period.
Minimum withdrawals are restricted to $100.
Market Value Adjustment
MVA will apply to withdrawals made before the end of the period. This will be with an exception of death benefits. The MVA will increase or reduce the account value depending on the economic conditions.
Annuitization
Clients can annuitize their accounts after 2 years (1 year in Florida and New York).
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. Spousal continuation is also available upon the annuitant’s death and will be waived of all MVA charges.
Waivers
Terminal illness and nursing home waivers are available in all states but with market value adjustment.
