A Strategy to Help Manage Your Retirement

Traditional 401(k) and IRA plans are built around the concept of making pre-tax or deductible contributions and enjoying tax deferred growth.  The tax benefits of that strategy work when tax rates are higher at the time you make the contribution than when you take the money out.  However, after years of historically low tax rates and significant pressure for future tax rate increases, this formula may be turned upside-down!  Ask yourself this question; Do you think taxes are going to go down in the future or rise in the future?  Its entirely possible that withdrawals from your 401(k) or IRA plans will be subject to higher taxes.  If this is the case for you, its time to get creative.

THE PROBLEM

Tax rates have risen and are affecting Middle America more than ever.  This leaves many concerned that rising tax rates will reduce their retirement savings and income when they need it most.  When considering retirement income sources and assuming tax rates to rise, one key challenge  is structuring an investment portfolio that minimizes large tax bills during retirement years.  Often retirement portfolios consist primarily of qualified plans such as a 401(k) or IRAs, which incur taxes on distribution (when you move money from the retirement account into your personal bank account).

THE SOLUTION

PAY TAXES NOW, AND DON'T PAY TAXES IN THE FUTURE

 
 

With life insurance, you can add needed benefit protection and tax diversification to a retirement portfolio.  The list of benefits is long and powerful.

  • Income-tax-free death benefit for your beneficiaries*
  • No defined annual IRS limitations on premiums*
  • No limit or gross income affecting your ability to contribute premiums
  • Tax Deferred Accumulation*
  • Distributions using loans and withdrawals are income-tax-free when structured properly*
  • No 10% penalty tax for accessing policy cash values prior to age 59 1/2 when structured properly*
  • Take distributions as needed*
  • No required minimum distributions (RMDs) for owners
  • Self-completing upon death (death benefit exceeds account value

Wouldn't it make sense to position a portion of your retirement assets to add tax diversification to your portfolio?

Speak now with an Aultium Retirement Specialist who can help you on your path to a Tax-Free Retirement.

*Aultium LLC or Aultium Insurance Services and/or its representatives do not provide tax or legal advice. If the policy is classified as a modified endowment contract, withdrawals or loans are subject to regular income tax and an additional 10% tax penalty may apply if taken prior to age 59 1/2. Distributions will reduce policy values and may reduce benefits. Availability of policy loans and withdrawals depend on multiple factors but not limited to policy terms and conditions, performance, and fees or expenses. Life insurance death benefits are generally tax-free for beneficiaries. It is important you seek professional tax advice from a tax professional.