2007 Investment Education Expo Simple. Smart. For you. For Life Kentucky’s New Deemed IRAs NRM-4680KY

2007 Investment Education Expo Simple. Smart. For you. For Life 1)Options to Help Prepare for Retirement 2)Deemed IRA Basics 3)Opportunities for KY Employees

Preparing for Retirement Individual Retirement Accounts Taxable Investments Supplemental Retirement Plans KERS & KTRS / Social Security Simple. Smart. For you. For Life

Preparing for Retirement KY Employees 457 Plan Roth 401k Deemed Roth IRA Deemed IRA 401k Plan Simple. Smart. For you. For Life

Preparing for Retirement Supplemental Retirement Plans Deemed IRAs Eligible for Payroll Deduction Employees of the Commonwealth, public schools and universities / other public employers Eligible & active employees Eligible to Roll- in other Retirement Accounts Employees of the Commonwealth, public schools and universities / other public employers Eligible & active employees plus those separated from service with a minimum Plan account balance of $5,000 Simple. Smart. For you. For Life

Preparing for Retirement Regular IRA –Available through banks, credit unions, brokerage firms, mutual funds, and others –Traditional and Roth versions Deemed IRA –Available as a component of a retirement plan –Traditional and Roth versions Simple. Smart. For you. For Life

2007 Investment Education Expo Deemed IRA Basics Simple. Smart. For you. For Life

Deemed IRA Basics Easy & Flexible Contributions 1)Payroll deduction – just like your other benefits – OR – 2) Direct Contribution  Personal check  Certified check  Money orders All contributions are subject to IRA annual limits

Deemed IRA Basics Contributions –Deemed IRA contributions are not counted toward the annual contribution limits associated with your 457 and 401(k) Supplemental Retirement Plans 457 plan: $15, k plan (including Roth): $15,500 Deemed IRA: $4,000 Simple. Smart. For you. For Life

Deemed IRA Basics Effective Tax-Year –Payroll Deduction: year that contributions are made –Direct Contribution: able to apply to either prior or current year until April 15 Simple. Smart. For you. For Life

Deemed IRA Basics Deemed Roth IRA Deemed IRA Maximum contribution $4,000 in 2007 $5,000 in 2008 $4,000 in 2007 $5,000 in 2008 Who can contribute For Full Contribution Single filer: <$95,000 Joint filer: <$150,000 Any wage earner under age 70½ Catch-up contributions Age 50+ $1,000 Age 50+ $1,000 Contributions after age 70½ YesNo Are rollovers permitted Yes, between Roth IRAs Yes, between Traditional IRAs & from other qualified employer-sponsored plans Simple. Smart. For you. For Life

Deemed IRA Basics Deemed Roth IRA Deemed IRA Tax Benefits Tax-free growth potential Contributions may be tax deductible Tax-deferred earnings growth Yes Earnings Taxed on withdrawals No federal taxes as long as rules are met Earnings are subject to federal income tax Penalty-free withdrawals After age 59 ½ Required Minimum Distributions NoYes, after age 70½ Simple. Smart. For you. For Life

2007 Investment Education Expo Opportunities for Kentucky Employees Simple. Smart. For you. For Life

Opportunities for You k / Roth 401k Deemed IRA Annual Contribution $15,500 (Combined) $4,000 (Combined) Age 50 Catch-up$5,000 $1,000 3-year “special” 457 Catch-up $15,500N/A Total Potential Contribution $20,500 OR $31,000$20,500$5,000 Simple. Smart. For you. For Life

Opportunities for You I’m contributing what I can through payroll deductions, but maybe I’ll have some extra at the end of the year. What can I do? Simple. Smart. For you. For Life

Opportunities for You I’ve been contributing on a pre-tax basis and I like how that works, but tax-free withdrawals sound great! What can I do? Simple. Smart. For you. For Life

Opportunities for You Keep things simple. One statement. One website. One phone number. Simple. Smart. For you. For Life

Opportunities for You Keep things simple. Consistent Investment Options Consistent Education Plan Service Representatives are registered representatives of Nationwide Investment Services Corporation, member FINRA Simple. Smart. For you. For Life

Opportunities for You I’m contributing to my KY 401k, and I have two IRAs that I’ve opened over the years. I have a hard time keeping track of everything. What are some options for me? Simple. Smart. For you. For Life

How KY Employees Benefit Simplification Multiple statements  One quarterly statement Multiple websites  Multiple phone numbers  Different investment lineups  Same as current Plan Inconsistent resources  Plan Services Reps Qualified retirement plans, deferred compensation plans and individual retirement accounts are all different, including fees and when you can access funds. Assets rolled over from your account(s) may be subject to surrender charges, other fees and/or a 10% tax penalty if withdrawn before age 59 ½. Neither Nationwide nor any of its representatives give legal or tax advice. Please contact your legal or tax advisor for such advice. Simple. Smart. For you. For Life

Opportunities for You Headline Benefits Flexible payout options –Based on your income needs Beneficiary designation –You decide Simple. Smart. For you. For Life

Opportunities for You Headline Benefits Asset fees –Breakpoints based on all the assets in your accounts Investment options fees –Lower, institutional pricing Simple. Smart. For you. For Life

Opportunities for You Variety Simplicity Consistency Simple. Smart. For you. For Life