Tax Deductible Life Insurance
Can you buy tax deductible life insurance these days? Many say no, but they are wrong. You can get tax deductible life insurance and you donít have to spend a bundle to get it.†
For as many years as life insurance has been inexistence, the great dilemma has been how to make the cost tax deductible. †It could be done, but traditionally has required huge expenditures that only the affluent could afford.†
These days, tax deductible life insurance is no longer the privilege of only the very rich. Regular folks like you and I can get it as well. The key is to understand the key is where we make the payments from, not the type of policy we buy per se. The secret is simple. If you have a retirement plan you control, you can get tax deductible life insurance.†
The strategy weíve developed focuses on how the government classifies money that is used by a specific form of retirement savings, the self-directed 401k platform. Donít have one? Donít worry, few people do. It isnít a problem as you can convert or move money into one with ease from IRAs, 401ks and so on. Just contact us to get the specifics.
How does this strategy work? Well, the revenue rulings by the government allow you to buy life insurance with the funds in the self-directed 401k. You are simply limited to using only 25 percent or less to do the transaction. This allows you to pick up life insurance. Ah, but what happens when you pass on? The payout from the policy goes in part to your 401k with the rest returning to the beneficiaries youíve indicated. Now here is the real benefit Ė they get the money income tax free.†
This is obviously only a simplified explanation of the strategy and represents just one of the many we implement for our clients to save them a ton on taxes and help them create wealth. Contact us today at 800-341-5433 to learn more about this strategy and others we have available.†