©2013 Lincoln National CorporationFor agent or broker use only. Not for use with the public.LCN-759997-112513

LIFE SOLUTIONS

Presenter name

Presenter title

Date of presentation

Life strategies to help protect wealth

Retirement planning for tax efficiency

Products issued by:The Lincoln National Life Insurance CompanyLincoln Life & Annuity Company of New York

LCN-759997-112513

For agent or broker use only. Not for use with the public.

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We focus on the affluent client and take a holistic approach to wealth accumulation through protection. Lincoln provides strategies and products to take clients from the accumulation phase to the retirement-spending phase, protecting wealthso that it passes on to the next generation.

LCN-759997-112513

For agent or broker use only. Not for use with the public.

FOCUS ON MAXIMIZING RETIREMENT DISTRIBUTIONS

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Advisors indicate that only 55% of their clients have aretirement income plan.

Source: Cogent Research, The Cogent Discovery Series: Advisor In-Retirement IncomeTM, 2013.

LCN-759997-112513

AGENDA

For agent or broker use only. Not for use with the public.

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Tax exposure of assets

Diversification of distributions

Wealth protection

LCN-759997-112513

For agent or broker use only. Not for use with the public.

TAX EXPOSURE OF ASSETS

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A major factor in retirement income planning

Source: The Wall Street Journal, MarketWatch, “10 Reasons Your Retirement Plan Won’t Cut It,” http://www.marketwatch.com/story/10-reasons-your-retirement-plan-wont-cut-it-2013-10-07, October 7, 2013.

LCN-759997-112513

For agent or broker use only. Not for use with the public.

TAX EXPOSURE OF ASSETS

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Not all assets selected in the accumulation phaseare ideal for the distribution phase.

Accumulation phase Distribution phase

Retirement

LCN-759997-112513

For agent or broker use only. Not for use with the public.

Tax-deferred

401(k)s, IRAs, etc.

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RETIREMENT SOLUTIONS

Governmentrestrictions

Municipal bonds, Roth IRAs

LCN-759997-112513

For agent or broker use only. Not for use with the public.

Tax-advantaged

Municipal bonds, Roth IRAs

Taxable

Stocks, bonds, mutual funds, etc.

$$ Taxes

RETIREMENT SOLUTIONS

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Governmentrestrictions

Tax-deferred

IRS

401(k)s, IRAs, etc.

Income tax-free

LCN-759997-112513

For agent or broker use only. Not for use with the public.

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NEW TAX INCREASES — AMERICAN TAXPAYER RELIEF ACT (ATRA)

Governmentrestrictions

Tax-deferred

TaxableTax-

advantaged

IRS

$$ TaxesIncome tax-free

401(k)s, IRAs, etc.Stocks, bonds,

mutual funds, etc.

Municipal bonds, Roth IRAs

Capitals gains +5.0%UIMCT2 (ACA) +3.8%

Top tax rate +4.6%Medicare +0.9%Personal Exemption Phaseout (PEP) & PEASE1 +10.0%

1Itemized Deductions Phaseout (Pease) — The Pease provision (named after former Congressman Donald Pease who sponsored the legislation) reduces the value of itemized deductions by 3% of the amount that adjusted gross income (AGI) exceeds $300,000 for joint filers and $250,000 for individuals. 2Unearned Income Medicare Contribution Tax (UIMCT) — A 3.8% surtax on unearned income for taxpayers whose total modified adjusted gross income (MAGI) exceeds $250,000 for joint filers or $200,000 for individuals. This tax affects interest, dividends, capital gains, annuities, royalties and rents.

LCN-759997-112513

For agent or broker use only. Not for use with the public.

1010

Governmentrestrictions

Tax-deferred

TaxableTax-

advantaged

IRS

Income tax-free$$ Taxes

401(k)s, IRAs, etc.Stocks, bonds,

mutual funds, etc.

Municipal bonds, Roth IRAs

TAX EXPOSURE OF ASSETS

Distributions

LCN-759997-112513

For agent or broker use only. Not for use with the public.

TAX EXPOSURE OF ASSETS

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What happens at retirementWhat happens at retirement

Age

59½ Age

62Age

65

Too much Modified Adjusted Gross Income: 85% of SS benefits taxed

Too much Modified Adjusted Gross Income: Medicare Part B costs increase from $105 to $336/month

RMDs add to tax exposure

Age

70½

Ordinary income tax + 10% penalty*

Tax-deferredbucket becomes taxable

*The 10% penalty is applicable for withdrawals from qualified plan and IRA accounts before age 59 ½.

LCN-759997-112513

For agent or broker use only. Not for use with the public.

DIVERSIFICATION OF DISTRIBUTIONS

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Diversify to protect wealth with Lincoln life insurance.

Tax-deferred growth

No contribution limits

Income tax-free distributions*

No penalties for early retirement

An income tax-free legacy

Nonreportable income

*Loans and withdrawals will reduce the policy’s cash value and death benefit.

LCN-759997-112513

For agent or broker use only. Not for use with the public.

DIVERSIFICATION OF DISTRIBUTIONS

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Rick, age 45, $500K annual income, purchases a Lincoln life insurance policy.

When he dies…his family has an income tax-free legacy.

Age

59½ Age

62Age

65

No impact on SS benefits

No impact on Medicare Part B

No RMDs

Age

70½

Income tax-free distributions,no penalties

No income tax

LCN-759997-112513

For agent or broker use only. Not for use with the public.

Legacy

DIVERSIFICATION OF DISTRIBUTIONS

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Effective retirement planning is focused on distributions.

Accumulation phase

Retirement

Distribution phase

TO THE NEXT GENERATION

LCN-759997-112513

For agent or broker use only. Not for use with the public.

HOW LINCOLN CAN HELP

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Why Lincoln?

Our focus: Wealth accumulation through protection for affluent clients •Retirement income•Long-term care protection•Wealth transfer solutions

The breadth and depth of our product portfolio

Expertise and support for your business

LCN-759997-112513

For agent or broker use only. Not for use with the public.

HOW LINCOLN CAN HELP

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Take charge with wealth protection solutions for your clients.

Contact your Lincoln representative.

LCN-759997-112513

For agent or broker use only. Not for use with the public.

THANK YOU

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This material was prepared to support the promotion and marketing of investment and insurance products. Lincoln Financial Group® affiliates, their distributors, and their respective employees, representatives, and/or insurance agents do not provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax penalties. Please consult your own independent advisor as to any tax, accounting, or legal statements made herein.

Lincoln life insurance policies are issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, and distributed by Lincoln Financial Distributors, Inc., a broker-dealer. The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so.

Policies sold in New York are issued by Lincoln Life & Annuity Company of New York, Syracuse, NY, and distributed by Lincoln Financial Distributors, Inc., a broker-dealer.

All guarantees and benefits of the insurance policy are subject to the claims-paying ability of the issuing insurance company. They are not backed by the broker-dealer and/or insurance agency selling the policy, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer.

Products, riders and features are subject to state availability. Limitations and exclusions may apply. Check state availability.

LincolnFinancial.com

Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates.

Affiliates are separately responsible for their own financial and contractual obligations.

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Not a deposit Not FDIC-insured May go down in value Not insured by any federal government agency Not guaranteed by any bank or savings association