You probably know some people with IRAs, 401(k)s, or 403(b)s – right?
Qualified dollars have their issues
- You can’t avoid eventually paying taxes on pre-tax money that grows tax-deferred.
- Required Minimum Distributions (RMDs): Money needs to be taken out beginning at 72, whether your client wants it or not.
- When qualified money passes to heirs at death, it is taxed at the heir’s current tax rate.
In our most recent LTC Coffee Break, Michael Florio and I discussed using qualified money to fund an Asset Care policy. To catch up on this episode, you can go to our LTC Coffee Break Channel.
- Reposition qualified money into Asset Care Annuity Funding Whole Life via direct transfer or rollover.
- The income base is credited with up to a 20% bonus.
- Annual distributions fund a 10-pay whole life policy that can be used for qualifying long-term care.
- LTC benefits can be payable for the lifetime of both insureds.
- The death benefit passes to heirs at death generally tax-free.
- Qualified money is reserved for LTC expenses — no need for your clients to deplete their portfolios at an inopportune time.
- Cover both spouses using one qualified account with no ownership issues.
- Annual distributions over 10 years count toward satisfying RMDs.
- Death benefit can help offset taxes owned on other legacy funds left to heirs.
If you have any questions, please contact Justin Fox at (844) 658-3725 or via email at firstname.lastname@example.org. Of course, I can be reached via text or phone at (678) 512-9627 and via email at email@example.com
Remember. “The Great Retirement Income Gap” consumer webcast is offered every Tuesday evening at 7 pm (eastern) is running until August 25. For more information or to customize your consumer webcast strategy, contact me directly.