The New Ways to Advise Clients About Life Insurance
Author: Dave Buckwald
The SECURE Act, with its 10- year limit on tax deferral by most non-spouse beneficiaries, has impacted the relationship between life insurance and IRAs.
Some clients have even considered withdrawing IRA dollars at the seemingly low tax rates today and using the proceeds to fund a life insurance policy. The payoff can be tax-free death benefits to children or even grandchildren. This can
be a creative strategy to turn potentially higher-taxed assets in the future into tax-free inheritance passed to heirs in the future.