As you know, once you start withdrawing money in retirement, income taxes will be due on the growth of your traditional IRA and 401(k) accounts. Most people think that’s okay, because they’ll be in a lower income tax bracket by that time.
But in reality, depending on your tax bracket and your account values, your IRA or 401(k) may be worth from 20 to 40% less than you think–right at the time when you’ll be living on a fixed income and really need the money! Consider that, plus the fact that income tax rates are at historic lows. Most experts expect tax increases in the future, which could mean an even steeper loss overall.
Is an IRA Reboot right for you? Watch this short video, which explains how you can systematically transfer IRA or 401(k) money into an indexed universal life account, with no out-of-pocket cost.
Ultimately with an IRA Reboot you will be able to withdraw your money tax-free in the form of loans which will provide you income during your retirement. IUL policy loans never have to be paid back, and any residual value remaining in your policy after death will go to your beneficiaries, tax-free.
IULs offer the possibility of bringing the full value back to your nest-egg using the IRA Reboot tax minimization strategy.
Find out if an IRA Reboot is right for you!
Read more about: IRA/401(k) Rollover Options
Located in San Diego, we’ve been helping people in California for over four decades with their financial needs. Call us at 800-313-PLAN (7526) to discuss the IRA Reboot and exactly how it works.