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Morgan Stanley Smith Barney
Corporate Client Group		  
 
To provide the executive with a certain level of comfort, many corporations informally fund nonqualified deferred compensation plans by setting aside assets intended to satisfy future payment obligations. However, these assets remain subject to the claims of the corporation's creditors in the event of bankruptcy or insolvency.

 
Mutual Funds Mutual funds offer familiarity and name brand recognition. Fund selection can mirror or complement the corporation's existing 401(k) plan. The company is responsible for any tax on investment income and/or realized capital gains.*
Managed Accounts

Through Morgan Stanley Smith Barney's Consulting Group, advanced investment management strategies can be developed to meet investment and tax management objectives. Morgan Stanley Smith Barney accomplishes this by following a three-step investment process:

  1. Setting investment objectives
  2. Manager selection and evaluation
  3. Ongoing review

The company is responsible for any tax on investment income and/or realized capital gains.
Corporate-Owned Life Insurance (COLI) Corporate-owned life insurance (COLI) is often used to fund nonqualified plans because it offers the sponsor unique tax advantages. The corporation is the owner and beneficiary of the insurance contracts. The growth in cash value ("inside buildup") is not currently taxed. Death benefits generally would be tax free to the corporation. Also, policy withdrawals and loans can potentially be made on a tax-advantaged basis. Each corporation should consult with their tax advisors regarding this.

 
* Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the fund. To obtain a free prospectus, please call your financial professional. Please read the prospectus carefully before investing.

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Morgan Stanley Smith Barney LLC and its affiliates do not provide tax or legal advice. To the extent that this material or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.		   Privacy, Business Continuity for U.S. Customers