Nationwide Financial Ready for Roth 401k
COLUMBUS, OH, December 21, 2005 - Beginning January 1, 2006, companies will be able to offer their employees a Roth 401k 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 401k 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 401k.
- Educational presentation for use with plan sponsors. Learn more about the Roth 401k, who may benefit from the option and whether a Roth 401k 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 401k 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 401k 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 401k plan. The program we have developed will assist plan sponsors with targeting communication to the individual needs of their employees."
The Roth 401k 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 401k plan. Participants of plans that elect to add the Roth option to their 401k plans can contribute up to a total of $15,000 between their pre-tax 401k and/or their after tax Roth 401k 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 and protect their long-term assets, and offers retirement plans and services through both public- and private-sector employers.
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