Recruit, Reward and Retain With Nonqualified Deferred Compensation Plans

You built your company from the ground up – and your employees have been with you every step of the way. So how do you help make sure they continue working for you – and not your competition?

Show them their true value with a nonqualified deferred compensation plan from Nationwide^®.

Benefits for your business

A nonqualified deferred compensation plan: 

• Serves as both a recruiting and retention tool for valued executives
• Requires less administration and fewer funding requirements than qualified plans
• Enables the business to select who receives benefits, when they receive them and how much they receive, unlike qualified plans
• Allows premiums to be paid by the business, the valued executive or both
• Provides a tax deduction when employee receives compensation from the plan

Benefits for the valued executives

By rewarding your valued employees with a nonqualified deferred compensation plan, your business gains loyalty and productivity through several advantages:

• Recognition of key employees’ contributions to your business
• Tax deferral of earnings until employee receives compensation under terms of
• the plan
• Compensation for supplementing current sources of retirement income
• Beneficiaries may receive tax-free death benefit proceeds in the event of the valued executive’s death

A few things you and your employees should keep in mind:

Depending upon structure, these types of plans may be complex as far as legal issues and taxes are concerned. Be sure to consult your legal and/or tax advisors for answers to any questions you have. Nationwide^® and its representatives do not provide legal or tax advice.

• This strategy does not guarantee returns or insulate you from losses, including loss of principal
• You should weigh your objectives, time horizon and risk tolerance as well as any associated costs before investing
• Market volatility can lead to the possibility of needing additional premium in your policy to ensure it does not lapse
• Variable life products allow the policyholder to choose an appropriate amount of life insurance that has an additional cost associated with it
• Loans and partial withdrawals will reduce the death benefits payable to your beneficiaries, and withdrawals above the available free amount will incur surrender charges
• All nonqualified deferred compensation assets are subject to the claims of the company’s creditors
• There is no tax deduction for any amount of presently deferred compensation
• The death benefit and any guarantees are subject to the claims-paying ability of the issuing insurance company

Your business is unique. So are the risks, costs and benefits of nonqualified deferred compensation plans. As with all insurance policies, this should be evaluated carefully.

For more specific information and answers to your investment questions contact your investment professional today. Don’t have one? Learn why to work with an investment professional and how to choose one.

Variable products are sold by prospectus. Carefully consider the investment objectives, risks, charges and expenses that may apply before investing. The prospectus contains this and other important information about the investment company. To request a copy, contact your investment professional or write to Nationwide Life Insurance Company, P.O. Box 182150, Columbus, OH 43218-2150. Please read the product and underlying fund prospectuses carefully before investing.

• Not a deposit • Not FDIC or NCUSIF insured • Not guaranteed by the institution • Not insured by any federal government agency • May lose value

Life insurance is issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, OH.

NFW-1469AO