Nationwide Financial(R) Ready for Roth 401(k)

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. 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. , 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