Nationwide Financial® adds calculator to Roth 401(k) educational lineup
June 27, 2006
Media Contacts:
Carah Brody
(614) 677-0725
brodyc@nationwide.com
Erica Lewis
(614) 249-0184
lewise6@nationwide.com
Columbus, Ohio — After just six months since the Roth 401(k) option became available, Nationwide Financial Services, Inc. (NYSE:NFS) has more than 2,500 participants in 450 plans with more than $4.2 million in assets. The Roth 401(k) option offers a significant tax-advantage for some people. The question many have is how to determine whether they are one of those people.
To help 401(k) participants understand whether the Roth option may be appropriate for them, Nationwide is making The Roth Retirement Plan Analyzer, an easy-to-use online tool, available. From nationwide.com, visitors will be linked to the tool where they can input their income, age, and existing assets, and perform “what if” scenarios using different tax rates to determine whether the Roth investment option may be right for them. In addition, the tool provides an easy-to-understand overview of the Roth 401(k), and some rules of thumb for assessing who may benefit from the investment option.
After completing their Roth analysis, participants can use the tool’s Gap Analyzer to help compare traditional 401(k) investments to Roth 401(k) contributions and determine whether they’re on track to ensure that their retirement savings will provide lifelong income once they have stopped working.
“I think many Americans are still uncertain how the Roth 401(k) can be used to help diversify and grow their retirement portfolio,” said John Davis, president of private-sector retirement plans. “Our goal at Nationwide Financial is to help individuals make better and more informed decisions about their retirement savings options by providing simple and easy-to-use tools and educational materials.”
The availability of the Retirement Plan Analyzer complements Nationwide’s comprehensive library of Roth 401(k) educational resources, including:
- Marketing materials. In depth resources that explain how the Roth 401(k) option works, what plan sponsors should consider before offering it, and tips to identify which employees could benefit from Roth 401(k) contributions.
- Online presentation forinvestment professionals. An explanation of the ins and outs of the Roth option, this presentation provides guidance on working with plan sponsors to help assess their needs and implement the Roth 401(k).
- Educational presentation for use withplan 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.
To learn more about the Roth 401(k) option and how it can play a role in reaching retirement planning goals, visit the Roth 401(k) Retirement Analyzer under the tools section of the investments and retirement page at www.nationwide.com.
About the Roth 401(k)
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 working1. In 2006, individuals can contribute up to $15,000 to their 401(k) plan. Participants of plans who elect to add the Roth 401(k) 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.
Neither Nationwide® nor its representatives give legal or tax advice. Clients should be advised to consult an attorney or tax advisor for answers to specific tax questions.
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 invest2 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. 98 on the Fortune 100 based on 2005 revenue3. For more information, visit www.nationwide.com.
Nationwide, Nationwide Financial and the Nationwide Framemark are federally registered service marks of Nationwide Mutual Insurance Company. On Your Side is a service mark of Nationwide Mutual Insurance Company.
1 Subject to the fulfillment of qualified withdrawal requirements
2 Nationwide Investment Services Corporation, member NASD. In MI only: Nationwide Investment Svcs. Corporation.
3 Fortune Magazine, April 2006
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