Inherited IRA Opportunity

Last week, I shared an idea that accompanies the Asset Care 2024 rollout meetings. And, I also reminded you of the vast array of funding options that exist with all of the Asset Care products regardless of generation.

As a reminder, OneAmerica Financial offers the ONLY turn-key funding solution for qualified money. I shared this idea back in March.

This typically applies to people age 59 1/2 and older due to the penalty associated with pre 59 1/2 distributions. HOWEVER, the this is not applicable with inherited qualified monies (401k, 403b, IRAs, etc.) even when the beneficiary is under the age of 59 1/2.

Remember, the SECURE Act requires that non-spouse beneficiaries liquidate the qualified account within 10 years of the inheritance. This requirement also aligns with the Asset Care qualified money strategy (called annuity funded whole life – Asset Care).

Let’s assume that Sam Sample – father and owner of $250,000 IRA dies and his son Sam Jr. is the primary beneficiary. Sam and his wife are in their early 50s and do not have a need for the extra income from the inherited IRA but are concerned about the ravages of a long-term care event because of what Sam Sr. experienced.

They decide to deploy this inherited IRA into their long-term care funding strategy using Asset Care. Here is how it would work.

The IRA rollover to OneAmerica Financial funds a qualified deferred annuity. Upon receipt of the $250,000, OneAmerica Financial bonuses the annuity 25% making the full annuity value to $312,500. Over 10 years, in equal installments, the deferred annuity funds the Asset Care policy. What does it buy?

Monthly long term care of $10,936 per month for both Sam Jr. and his wife for an unlimited duration of time. This LTC benefit will be paid by accelerating from the death benefit for the first 2 years then the continuation of benefits rider will step in and continue to pay claims for the duration of what is needed.

If they never use the policy for LTC benefits, a tax-free death benefit will be paid to their designated beneficiary.

Check out the Repurpose Inherited IRA one-pager

(Note: this strategy is not intended for Roth IRAs.)

Have questions? Contact Justin Fox at (844) 658-3725 or justinfox.isp@oneamerica.com, or Nick Angelov at (844) 623-4251 or nick.angelov.isp@oneamerica.com, or myself at (678) 512-9627 or kevin.fisher@oneamerica.com