Life Insurance

Taxes in Retirement

Strategies for Taxes in Retirement

Tax-Free Retirement Options

How can I retire tax-free? By using certain Indexed Universal Life (IUL) policies, you may be able to receive income that isn’t taxable. Roth IRAs and Roth 401(K) plans can also be used to get tax-free retirement income. Depending on how you plan to retire, you might adopt additional strategies for taxes in retirement. A life insurance policy that offers max cash value to you could potentially provide you tax-free income.

Learn more about IUL Policies

Strategies For Life Insurance And Taxes In Retirement

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Life insurance is not typically thought of as a source of retirement income, but it can be. Generally, earnings on certain retirement accounts and investments must be taxed. Many accounts require you to pay taxes when you withdraw money. IULs, however, are not taxed the same way as other life insurance policies. In reality, an IUL does not actually invest in the stock market though it can be linked to an index. As a result, your money is not at risk either. Therefore, an IUL may provide retirement income tax-free. All policies have certain conditions and terms. Get in touch to find out what options are available to you regarding taxes in retirement.

Is It Possible To Retire With An IUL?

Our team at Hybrid Financial can work with you to determine if an IUL may be a good option for you. Additionally, we can review any current policies you may have and identify the next steps. Below is a list of questions to consider. 

  • Will taxes be higher in the future? 
  • Can offset rising taxes in retirement in my strategy?
  • Is there a tax burden on my beneficiaries? Is there a way to minimize the impact?
  • What amount of tax-free* money do I have set aside, if any?
  • What would I prefer: to pay taxes now or to pay taxes at possibly higher rates later?

Discover Your Options

There are several benefits to indexed universal life insurance (IUL). We cannot predict what future tax rates will be. We also don’t know how those rates may affect your retirement. You can, however, make a plan. It might be worth exploring IUL insurance. Many retirees have confidence in employing an IUL as part of their tax strategy. Their money principal remains safe from market decline, and their income is tax-free.

Call Our Team
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To learn more, attend one of our “Greenline” or “Tax-Free Retirement” workshops.

You can also contact our office for a no-cost, no-obligation consultation. We can help you with strategies for taxes in retirement and life insurance policies.

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Fort Worth Office

1701 River Run, Suite 1100, Fort Worth, TX 76107

Abilene Office

3303 North 3rd Street, Suite B, Abilene, TX 79603

Granbury Office

303 W Pearl Street, Granbury, TX 76048

Cedar Hill Office

610 Uptown Blvd, Second Floor, Cedar Hill, TX 75104

*Proceeds from an insurance policy are generally income-tax-free, and if properly structured, may also be free from estate tax. Income-tax-free distributions are achieved by withdrawing to the cost basis (premiums paid), then using policy loans. Loans and withdrawals may generate an income tax liability, reduce available cash value, and reduce the death benefit, or cause the policy to lapse. This assumes the policy qualifies as life insurance and is not a modified endowment contract. The Host and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. This content is not intended to serve as the basis for any investment or purchasing decisions, nor does it recommend or involve the purchase, holding, or sale of a security.  All figures herein are hypothetical and for illustrative purposes only to explain general concepts.  No figure is to be relied upon as being accurate nor a guarantee or projection and is meant only as a partial overview of some relevant features and benefits of general insurance products that may be in the marketplace, and whose availability will be dependent on the State of residence of the consumer, and their individual suitability for the product they are wanting to purchase. Where insurance products are mentioned, any and all guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.

IMPORTANT CONSUMER INFORMATION

This site is for informational purposes only and is not intended to be a solicitation for or offering of any product or investment. The offer for sale of an insurance product may only be conducted in a state where the agent is licensed and the product is approved for sale. The providing of investment advice relating to securities may only be done by a properly licensed individual operating through a licensed affiliate entity, unless otherwise exempt. Comments about past performance are not to be construed as a guarantee or assurance of future performance. This website may contain concepts that have legal, accounting and tax implications. We do not provide specific legal or tax advice, nor promote, market or recommend any tax plan or arrangement. Consult a tax/legal professional for guidance with your individual situation. No representations are made as to the accuracy or completeness of the information contained herein or any information contained in any link provided herein, nor does a consumer visiting the web site create an agent-client relationship.

By contacting Rocky Campbell TX Ins Lic #1754497 / Hybrid Financial LLC TX Ins Lic #2538408 you may be offered information regarding the purchase of insurance products, including fixed index annuities and life.

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