Educational tools available now to assist investment professionals
COLUMBUS, Ohio, Dec. 21 /PRNewswire/ -- Beginning January 1, 2006,
companies will be able to offer their employees a Roth 401(k) option within
their existing retirement plan. Nationwide Financial Services, Inc.
(NYSE: NFS) has created a series of educational materials for investment
professionals to use when working with their plan sponsors that help explain
the Roth 401(k) and provide guidelines to identify whether the savings option
would be a good fit within their organization.
Nationwide Financial has already completed the necessary system
enhancements to provide superior administrative and record keeping support
based upon current IRS guidance. In addition, Nationwide Financial has
developed a series of educational tools and marketing materials to assist
investment professionals with communicating this new feature to both its
existing and prospective plan sponsor clients, including:
- Marketing materials. In depth resources that explain how the Roth
option works, what plan sponsors should consider before offering the
Roth option and tips to identify which employees could benefit from
Roth contributions.
- On demand presentation for investment professionals. An online
presentation that explains the ins and outs of the Roth option and
provides guidance on working with plan sponsors to help assess their
needs and implement the Roth 401(k).
- Educational presentation for use with plan sponsors. Learn more about
the Roth 401(k), who may benefit from the option and whether a Roth
401(k) is right for an individual company's plan.
- Calculator. In 2006, Nationwide Financial will launch a new, online
interactive tool, that can help plan sponsors and participants evaluate
if contributing to a Roth 401(k) would be beneficial. The tool also
includes a projection of earnings.
"Every organization is made up of a diverse group of people, each with
their own individual needs when it comes to saving for retirement. The Roth
401(k) is another planning tool employers can offer their associates to help
them financially prepare for their future," said Michael Butler, senior vice
president of Nationwide Financial Services Distributors, Inc. "Education will
be essential to both implementing and engaging employees to participate in a
Roth 401(k) plan. The program we have developed will assist plan sponsors with
targeting communication to the individual needs of their employees."
The Roth 401(k) option provides participants the flexibility of saving for
retirement with after-tax income allowing them to make tax-free withdrawals
once they've stopped working. In 2006, individuals can contribute up to
$15,000 to their 401(k) plan. Participants of plans that elect to add the Roth
option to their 401(k) plans can contribute up to a total of $15,000 between
their pre-tax 401(k) and/or their after tax Roth 401(k) option. The
contribution limit is $20,000 for individuals age 50 and older.
For more information, or to view any of these materials, visit
http://www.nationwide.com or contact your Nationwide Internal Retirement Plan
Consultant at 1-800-626-3112. Neither Nationwide(R) nor its representatives
give legal or tax advice.
About Nationwide Financial
Nationwide Financial Services, Inc. (NYSE: NFS), a publicly traded company
based in Columbus, Ohio, provides a variety of financial services that help
consumers invest(1) and protect their long-term assets, and offers retirement
plans and services through both public- and private-sector employers.
It's part of the Nationwide group of companies, which offers diversified
insurance and financial services. The group is led by Nationwide Mutual
Insurance Company, which is ranked No. 99 on the Fortune 100 based on 2004
revenue(2). For more information, visit http://www.nationwide.com.
Nationwide, Nationwide Financial and the Nationwide Framemark are
federally registered service marks of Nationwide Mutual Insurance Company. On
Your Side and Nationwide Financial Network are service marks of Nationwide
Mutual Insurance Company.
(1) Nationwide Investment Services Corporation, member NASD.
In MI only: Nationwide Investment Svcs. Corporation.
(2) Fortune Magazine, April 2005
Contacts:
Carah Brody at (614) 677-0275
brodyc@nationwide.com
Erica Lewis at (614) 249-0184
lewise6@nationwide.com
SOURCE Nationwide Financial Services, Inc.
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Related links:
http://www.nationwide.com
Company News On-Call:
http://www.prnewswire.com/comp/607050.html
CONTACT:
Carah Brody, +1-614-677-0275, or
brodyc@nationwide.com , or Erica Lewis, +1-614-249-0184, or
lewise6@nationwide.com , both of Nationwide
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