Escaping The IRA Tax Monster

Many, if not most, Americans believe their qualified retirement plan is a great tax shelter. Everyone seems to agree that these types of tax shelters are "good" and should be utilized and that the only argument is where to invest the money once it's inside the plan. All signs point to...

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Bibliographic Details
Published in:National Underwriter. Life & Health 2008-07, Vol.112 (26), p.14
Main Author: Reese, Michael D
Format: Article
Language:English
Subjects:
Individual retirement accounts
IRA
Life insurance
Retirement plans
Tax rates
Tax shelters
Online Access:Get full text
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Summary:Many, if not most, Americans believe their qualified retirement plan is a great tax shelter. Everyone seems to agree that these types of tax shelters are "good" and should be utilized and that the only argument is where to invest the money once it's inside the plan. All signs point to tax rates increasing at some point in the near future whether they want them to or not. The life insurance may offer an additional advantage. Additionally, should your client desire that their beneficiaries receive their account in the form of a "Stretch IRA," you can have the life insurance death benefit paid into a trust that provides the same benefit, with a significantly better tax result assuming that the funds within the trust are invested in a tax-efficient manner.
ISSN:1940-1345