The Guaranteed Interest Rate for 2019 is 3.05%
- Local Unions Savings Plan was formed in 1975.
- Nationwide Insurance Company is the funding agent for the plan.
- Nationwide is a highly rated insurance company. This fact can be confirmed by checking with an insurance ratings agency.
- The assets of the plan are not accessible to the creditors of Nationwide. Nationwide guarantees the principal and interest in the plan.
- The current value of the trust is in excess of $110 million dollars.
- No federal agency insures the assets in the plan.
- The interest rates are negotiated annually with Nationwide and are fixed for the coming year.
- It is possible to make lump sum deposits as frequently as desired, in minimum amounts $500. There is no maximum limit.
- Interest earnings on member’s accounts are accumulated on a deferred tax basis. This means that no taxes are due until the money is withdrawn.
- There is no requirement to take withdrawals when you reach 70 ½.
- If you withdraw money from your account before age 59 ½, you may be subject to the 10% TEFRA tax on earnings only. This tax is imposed by the IRS.
- Because this is not a tax qualified retirement plan, you may not roll-over any qualified retirement plan money such as from 401Ks, or IRAs. Only after-tax contributions may be put into these accounts.
- You may withdraw all your account value at any time without penalty (see withdrawal fees below).
- You may take a partial distribution once in a twelve month period and can not exceed 60% of the account balance at the time of withdrawal. There is a small service charge, currently $25.
- You may take a “Stop” withdrawal at any time for 100% of the account balance; however, contributions will be postponed for a six month period. Once a Stop withdrawal has been made, a residual will be made every 30 days for the six month period, if the contributions are not postponed. There is a service charge, currently $50.
- Force Out Provision: Accounts that have been inactive for six months, with a balance of under $50, will be paid out to the participant.
- Withdrawal Fees: The fee schedule will be $25 for partial, residual, and force out payments, and $50 for any Stop withdrawal.
- Beneficiaries: You may designate anyone to be the beneficiaries of your account. Your account value will pass to them if you should die.
- You may purchase an annuity when you are ready to retire or leave the account to continue earning at the rate enjoyed by active participants.
Anyone desiring more information, or requesting to join this plan should call 845-367-7625 and ask for the plan administrator.
