The first Tuesday of every month, Michael Florio and I host our webcast – LTC Coffee Break. This past episode, we discussed using qualified money as a funding source for long term care insurance. You can catch our most recent release and access our library of past shows at our website at or just CLICK HERE to begin viewing the video.

One point that I need to reiterate when we are talking about using qualified money as a funding source, we are talking about using proceeds from an IRA, 401(k), or 403(b). Roth IRA and 401(k) plans do not fit the mold for this solution.

In last week’s Fridays with Fisher post, I mentioned the SECURE Act. This change creates a very distinct opportunity and your clients who inherit IRA money which prompts the idea I will be sharing with you.

The SECURE Act effectively eliminated the “Stretch IRA” by requiring the proceeds from inherited IRAs to be fully distributed within 10 years. For a decent review of the SECURE Act provisions, this Fidelity article does a good job. There are other provisions like raising the Required Minimum Distribution (RMD) age to 72 but we are focusing on inherited IRAs.

With the 10 year distribution requirement in mind, I want you to consider this.

When your non-spouse client inherits qualified money and the SECURE Act is a concern, roll some of that money into the OneAmerica Asset Care product funded by qualified money.

Once that IRA rollover is received, those monies are bonused 20% (guaranteed). So, a $100,000 rollover becomes $120,000 and is used to fund the underlying Asset Care policy. Said another way, each dollar in the rollover spends like $1.20 when it is applied to fund the Asset Care policy.

Remember, that qualified money funds a qualified deferred annuity which is used to fund the Asset Care solution over a period of 10 years of equal installments. Those distributions for premium are taxable. And, if the inherited IRA owner is under the age of 59 1/2, there is no 10% penalty.

Remember, those distributions are considered constructive receipt (hence the taxation) which allows you to create a long term care solution that includes your spouse. That is another advantage to the Care Solutions portfolio – in addition to the products being non-cancellable, in most instances – they can insure both spouses.

And, only at OneAmerica, you will find unlimited lifetime benefits with guaranteed benefits and premiums. For more about the strategy, you can check it out in our product brochure.

So, there you have it, and idea that you can use with inherited IRAs.

Remember, if you would like to learn more about this or any other OneAmerica product or service, reach out to my internal Justin Fox at (844) 658-3725 or via email at

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