Thursday, August 06, 2009
IRA-Pension Rescue Using Cash-Value Life Insurance
The 75 percent tax trap, often called the double-tax trap, arises when clients with estate tax problems also have money "trapped" in IRAs and/or qualified plans.
The classic client is 60+ years old who has an estate of $5,000,000 or more and $500,000+ in an IRA or qualified plan that they do not need to use for retirement income. The key is that the client doesn't need the tax-deferred money for retirement. If that is the case, you can nearly guarantee that such clients will have that money double taxed at their death.
IRA-Pension Rescue Using Cash-Value Life Insurance
Source: Producers Web
The classic client is 60+ years old who has an estate of $5,000,000 or more and $500,000+ in an IRA or qualified plan that they do not need to use for retirement income. The key is that the client doesn't need the tax-deferred money for retirement. If that is the case, you can nearly guarantee that such clients will have that money double taxed at their death.
IRA-Pension Rescue Using Cash-Value Life Insurance
Source: Producers Web
Permalink posted by armandn @ 7:44 AM 
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