Tax Efficient Strategies for You and Your Heirs
Required Minimum Distributions (RMDS)
You've spent years building up your retirement funds. Your goal was to accumulate these assets as tax-efficiently as possible, perhaps with
qualified plans like 401(k)s.
Qualified plans are a good way to accumulate money for retirement — but
not so efficient for transferring a legacy to your heirs.
Plus, distributions are considered taxable income - which can be
compounded if assets were also subject to estate taxes upon your death.
Permanent Insurance for
Long-Life Protection
Create a Tax-efficient Legacy
Solution:
If you don't need the money, you can use the required distributions of your qualified plan to fund a life insurance policy. This can create a more tax-efficient legacy for your heirs — and can make good sense...
Especially if any of these
situations apply:
You need a life insurance death benefit to pay estate taxes when you die.
You have multiple sources of income and assets with varying tax implications.
Your children are in a higher tax bracket than you are.
You don't need all your qualified plan assets for living expenses.
Benefits
Gain more control over when you pay taxes.
Secure a nontaxable retire-
ment income source.
Manage future Required Mini- mum Distribution payments.
Optimize legacy distribution
payouts to beneficiaries.
Tax-Free Growth with your Heirs
Benefits of Partial ROTH Conversion
Partial Roth conversions can be a powerful tool to create tax diversification in your retirement income portfolio or the inheritance you leave to your heirs.
Careful planning with pre-tax funds in the right tax environment can allow you to pay less in taxes over time. In general, there are two ways an individual can fund a Roth IRA:
1. Personal contributions up to the annual limit
2. Roth Conversion from Traditional IRA, SEP or SIMPLE IRA