When required minimum distributions (RMD) need to be taken (70 1/2) from an IRA, they can be a tax nuisance to those that don’t really need them. As long as they are insurable, the after tax portion of the RMD could be used to fund a guaranteed-no-lapse UL that might equal or exceed the value of the retirement fund. Proceeds from a life insurance policy (death benefit) are income-tax free. This strategy redistributes assets to be more efficient. Call us today about how we can help you help your client transfer maximum dollars to the next generations.
Not intended to be tax or legal advice. Consult with a qualified tax and/or legal advisor before making any decisions regarding purchasing financial products.