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Tax Deferral

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Tax Deferral

We offer greater tax deferring capacity for clients who’ve maxed out their 401(k)s, received a large sum of money, seek downside protection, or for active managers who need to improve the tax efficiency of their strategies.

Variable annuities are long-term, tax-deferred investments investors buy from an insurance company to help them save for retirement. They are called “variable” because their value fluctuates based on the performance of the underlying investment options chosen. Some variable annuities offer optional living and death benefits for an additional fee. There are some limitations that may not be right for all investors, including that withdrawals are subject to income tax and those taken before age 59½ may be subject to a 10% early withdrawal federal tax penalty. Keep in mind that all guarantees and protections are subject to the claims paying ability of Nationwide Life Insurance Company. We also need to add that all guarantees and protections are subject to the claims paying ability of Nationwide Life Insurance Company.

Large cash infusions can cause tax headaches. Variable annuities can provide additional capacity in events likes these.

Large cash infusions like the sale of a business, annual bonus, or an inheritance can cause tax headaches. Thanks to virtually unlimited contribution limits, advisors may rely on a low-cost Investment Only Variable Annuity (IOVA) for the additional capacity needed in events like these. An IOVA can provide liquidity and a tremendous diversity of choice, all at a low-cost, to take full advantage of the compounding power of tax deferral.

Fishing for tax deferral? See how Monument Advisor can help you reel in the sting of taxes. Watch video.

The compounding power of low-cost tax deferral can add up to a more secure and satisfying retirement option for your clients.

With contribution limits of only $19,000 (for 2019) high-earning investors can max out their 401(k) plans quickly. Looking to extend tax deferral, these investors have typically sought out traditional variable annuities for their higher maximums. But the cost and complexity of these retirement vehicles can limit returns. Typical variable annuities charge 1.32% in M&E fees, and often come with lock up periods that make them illiquid and expensive. For clients looking to maximize accumulation for retirement, a simplified, low-cost Investment Only Variable Annuity (IOVA) may help solve the cost and complexity problem.

Fishing for tax deferral? See how Monument Advisor can help you reel in the sting of taxes. Watch video.

Improving the tax efficiency of client portfolios is critical for improving investment returns.

Locating tax-inefficient assets in a tax-deferred vehicle eliminates the tax drag on dividends and interest income and allows those reinvested assets to compound over the life of the investment, which can improve accumulation. The challenge is to find a low-cost, tax-advantaged account with a large enough selection of underlying funds to meet the needs of high net worth investors.

Fishing for tax deferral? See how Monument Advisor can help you reel in the sting of taxes. Watch video.

For clients approaching retirement, an unexpected market fluctuation could mean the difference between retirement now and retirement much later.

Protecting assets from volatility is critical for preserving your clients’ retirement assets. Using Nationwide Advisory Retirement Income AnnuitySM, clients can elect Retirement Income DeveloperSM, a guaranteed lifetime withdrawal benefit1, for the opportunity to lock in market performance each year2, protecting their future retirement income3 from any market downturn. Combined with the tax-deferred benefits annuities offer, NARIA can help advisors address their clients’ retirement income needs.

1Retirement Income Developer is available for an additional cost for 0.80% (1.00% for joint option).

2An annual step-up feature on your income benefit base is available if contract value is higher than benefit base on contract anniversary (please keep in mind that early, excess and non-lifetime withdrawals may reduce or terminate the income benefit base; certain restrictions and limitations may apply).

3Withdrawals of earnings at any age are subject to ordinary income tax; distributions prior to age 59½ may be subject to a 10% early withdrawal federal tax penalty.

Meet Jim

Small Business Owner in need of tax deferral

Jim

Advertising Agency Partner who has maxed out her 401(k)

Ellen

Meet Jerry

Salesman trying to minimize the tax impact on his fixed income investments

Jerry

Meet Terry

Salesman trying to minimize the tax impact on his fixed income investments

Terry

Large cash infusions can cause tax headaches. Variable annuities can provide additional capacity in events likes these.

Large cash infusions like the sale of a business, annual bonus, or an inheritance can cause tax headaches. Thanks to virtually unlimited contribution limits, advisors may rely on a low-cost Investment Only Variable Annuity (IOVA) for the additional capacity needed in events like these. An IOVA can provide liquidity and a tremendous diversity of choice, all at a low-cost, to take full advantage of the compounding power of tax deferral.

Meet Jim

Small Business Owner in need of tax deferral

Jerry

The compounding power of low-cost tax deferral can add up to a more secure and satisfying retirement option for your clients.

With contribution limits of only $19,000 (for 2019) high-earning investors can max out their 401(k) plans quickly. Looking to extend tax deferral, these investors have typically sought out traditional variable annuities for their higher maximums. But the cost and complexity of these retirement vehicles can limit returns. Typical variable annuities charge 1.32% in M&E fees, and often come with lock up periods that make them illiquid and expensive. For clients looking to maximize accumulation for retirement, a simplified, low-cost Investment Only Variable Annuity (IOVA) may help solve the cost and complexity problem.

Advertising Agency Partner who has maxed out her 401(k)

Ellen

Improving the tax efficiency of client portfolios is critical for improving investment returns.

Locating tax-inefficient assets in a tax-deferred vehicle eliminates the tax drag on dividends and interest income and allows those reinvested assets to compound over the life of the investment, which can improve accumulation. The challenge is to find a low-cost, tax-advantaged account with a large enough selection of underlying funds to meet the needs of high net worth investors.

Meet Jerry

Salesman trying to minimize the tax impact on his fixed income investments

Jerry

For clients approaching retirement, an unexpected market fluctuation could mean the difference between retirement now and retirement much later.

Protecting assets from volatility is critical for preserving your clients’ retirement assets. Using Nationwide Advisory Retirement Income AnnuitySM, clients can elect Retirement Income DeveloperSM, a guaranteed lifetime withdrawal benefit1, for the opportunity to lock in market performance each year2, protecting their future retirement income3 from any market downturn. Combined with the tax-deferred benefits annuities offer, NARIA can help advisors address their clients’ retirement income needs.

1Retirement Income Developer is available for an additional cost for 0.80% (1.00% for joint option).

2An annual step-up feature on your income benefit base is available if contract value is higher than benefit base on contract anniversary (please keep in mind that early, excess and non-lifetime withdrawals may reduce or terminate the income benefit base; certain restrictions and limitations may apply).

3Withdrawals of earnings at any age are subject to ordinary income tax; distributions prior to age 59½ may be subject to a 10% early withdrawal federal tax penalty.

Terry

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