Common use of SMALL ANNUITIES Clause in Contracts

SMALL ANNUITIES. If the amount to be applied to purchase an Annuity is less than $5,000, or other amount as permitted by law, Nationwide may, instead of purchasing an Annuity, make a Cash Payment to the Participant, Beneficiary, or Contract Owner. The Cash Payment will be equal to the amount to be applied, less any tax or charges. SAMPLE DC The Contract Owner must provide all of the information which Nationwide shall specify to the Contract Owner as being required in order to determine the amount of consideration required to purchase an Annuity. Nationwide will purchase an Annuity by withdrawing from the Guaranteed Fund the full consideration therefore, plus the amount of tax, if any. In the event a notice to purchase an Annuity is received by Nationwide after the first Annuity payment becomes due, the first payment will be adjusted accordingly if requested by the Contract Owner. The amount of the back payment will be equal to the dollar amount of the payments to be adjusted prior to the first Annuity payment, without increase for delay. If the Withdrawal requested, plus any applicable expense charges and taxes, exceeds the amount of the Guaranteed Fund, the amount of the Annuity and any back payment will be limited to that which can be purchased by the amount of the Guaranteed Fund remaining after Withdrawal of any tax or charges.