IRA maximization is one of the first funding strategies that I was introduced to more than 3 decades ago when I was first entered the insurance industry as a career agent in southern New Hampshire.
According to the Congressional Research Service, the Federal Reserve’s Financial Accounts of the United States report said that as of December 31, 2022, there were over $37.8 trillion held in US retirement plans and accounts. $26.3 trillion was in employer sponsored plans and $11.5 trillion sat in individual retirement accounts.
A client who might benefit from this strategy is one with significant finds in their qualified accounts (IRA, 401k, 403b) whose beneficiaries may be faced with tax challenges upon their death. Specifically, in the case of non-spouse beneficiary, the SECURE Act requires liquidation of that inherited account within a decade. And, don’t forget that the internal revenue code stipulates required minimum distributions (RMD) begin by age 73.
In a “traditional” IRA max strategy, the client takes distributions from their qualified money that will satisfy the RMD requirement. That distribution will be first taxed as ordinary income then used to purchase a life insurance policy. At death, both the remaining proceeds of the qualified money and a tax-free life insurance death benefit will be paid to the beneficiaries.
I hope you notice the similarity to the Asset Care funding strategy that only OneAmerica Financial offers. To learn more about the strategy, check out the Fridays with Fisher post from October 27, 2023.
You might be saying “yeah, yeah, yeah – I’ve heard this a dozen times.” This is true, but you haven’t heard this before … as part of the Asset Care customer presentation, there is now a funding asset care using qualified money section.
That is right, you can generate a presentation for funding Asset Care using qualified money for your specific client. How do you do it? Generate an illustration using OneSource Online (not the Care Solutions Calculator).
Remember, you need to run the illustration or generate the quote before attempting to produce the consumer presentation which is dependent upon the values generated by the illustration.
For more information about the Ensight Consumer presentation, please follow this link: http://tinyurl.com/4vtkvcfj
Here are a couple of the pages that you will find in the presentation. Remember, each one is unique to each illustration that you run and can be produced to be either a static report or a dynamic interactive presentation.
So, remember this – qualified money can be a powerful funding tool and that the age-old IRA Max strategy has another application – funding long term care. It can done either by using the turn-key Asset Care strategy or by simply self-directing the monies into an Asset Care policy.
If you need more information or have any questions, please contact Justin Fox at justinfox.isp@oneamerica.com or on his toll free direct line at (844) 658-3725.
As always, thanks for taking time for me.
In the February episode of Coffee Break, we shared with you the NEW OneAmerica Financial as well as a navigational overview of the updated OneAmerica.com website. If you have not viewed it, please take a minute to see this week’s episode.
Jumpstart your year with the Million Dollar Annuity Strategy.
It is easy to do … review your book of business and identify your clients who are over 75 and own annuities that are on the sideline and have been earmarked for an emergency. This is a big thing that can make a difference in preserving assets, control, dignity, and a legacy when an extended care event occurs.
This is what the million dollar annuity strategy is all about. The transformation of tax-deferred money into tax-free distributions for long term care. Learn more about it at https://fridayswithfisher.com/million-dollar-annuity/.
My “big ask” of you for the million dollar annuity strategy is to identify 3 or 4 annuity owners 75 or older who might be viable candidates for our leverage strategy then give us a call.
Fridays with Fisher 
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