The Nationwide Corporate Incentive Program®

A nonqualified deferred compensation plan that allows you to reward your best employees without the strict funding and participation guidelines of qualified plans

What are the business benefits?
The Nationwide Corporate Incentive Program® (TNCIP) is a nonqualified, 401(k) mirror deferred compensation plan that provides benefits for both the employer and the top executives without the reporting and disclosure requirements of qualified plans and without the fiduciary responsibility and liability of qualified plans.

The term “401(k) mirror” means a type of unfunded, nonqualified deferred compensation plan that meets the “top-hat” exemption of the Employee Retirement IncomeSecurity Act. A viable option for the small to midsize employer, it:

Can be used to supplement or replace a qualified plan
Allows you to define who gets to participate in the plan
May allow for full employer cost recovery
What are the employee benefits?
The Nationwide Corporate Incentive Program is an attractive benefit to key employees because it:

May reduce their current income tax liability
Increases potential retirement income
Allows for deferrals in excess of the current qualified plan limitations
How TNCIP works
With TNCIP, the participant elects to defer a specific dollar amount or percentage of future compensation and chooses from a menu of crediting rate choices that may range from very conservative to very aggressive.

The employer may make matching contributions based on a formula or discretionary contributions as allowed in the agreement. Employee deferrals and any employer contributions are credited to the executive’s deferred compensation account, along with any periodic gains or losses.

The plan allows an executive to defer some or all of his/her current income, thereby avoiding current income tax. The deferred amount is credited to an account that may grow at a fixed rate or be tied to a variable rate of return such as a mutual fund or a variable insurance subaccount, which involves market risk including possible loss of principal.

Remember that tax laws are complex and can change over time. Individual tax situations may vary, and a tax professional can offer executives specific advice.

Is this incentive program right for your business?
Nonqualified deferred compensation plans offer employers the opportunity to attract talented executives. And it allows those key employees the opportunity for additional retirement savings. Talk with your insurance or investment professional about whether a 401(k) mirror plan is right for you and your executives.Don’t have one? Learn why to work with an investment professional and how to choose one.

• 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 products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Life Insurance Company, Columbus, Ohio.