May 12, 2021
Help Your Clients Leverage IRA Savings to Maximize Their Legacy
Learn more about this strategy and leveraging the power of life insurance.
Individual Retirement Accounts (IRAs) and qualified plans are powerful tools for individuals to accumulate assets for retirement needs and help build a legacy. In December of 2019, the SECURE Act upended the rules for inherited IRAs, putting an end to the “Stretch IRA” era for many beneficiaries. Under previous tax law, non-spouse beneficiaries could take required minimum distributions based on their life expectancy; the new law requires most non-spouse beneficiaries to deplete the entire IRA within 10 years. This change may result in additional, higher and expedited tax burdens for beneficiaries, and ultimately lessen the legacy left.
For IRA and qualified account owners who are not relying on those assets for retirement income, using distributions from the account to fund a permanent life insurance policy can help them convert their account into a potentially larger, tax-free inheritance for their heirs.
If you have a client who wants to optimize IRA assets beyond their own retirement and leave a lasting legacy, there has never been a better time to leverage the power of life insurance.
Learn more about this strategy and find new consumer and agent resources featuring this sales idea on our:
