Some Qualified Plans can seem like brilliant government schemes to delay taxes more than they seem like great retirement plans. Consider for a moment a 70 year old client about to turn 71 who has $1,000,000 in an IRA.
He has worked hard to build wealth and has taken some advantage of taxation benefits to build his IRA. While this is a great asset for him, he has other assets and doesn’t need the income from the IRA to live his lifestyle. After he turns 70, he will have to start taking distributions from those funds and they will be taxed. Not only that, but should he pass away and leave that policy to his beneficiaries, they will also pay income tax on the money……..smart move government! Check mate they say! Not so fast government.
If you currently have clients who are being forced to take Required Minimum Distributions that they don’t necessarily need to live, watch this brief and informative video below to see a unique solution to that problem. Your clients and their heirs will be very happy you invested the time to learn about this!