its not only about how much you can accumulate for retirement



There are two main strategies to achieve tax free retirement. 



Look Closer at Tax-Free Retirement Strategies 

Roth IRAs: Good choice…if you qualify. In order to contribute to a Roth IRA your adjusted gross income must be below a certain threshold. In 2018, contributions are limited to $5,500 per person unless you’re 50 or older and then you can contribute an extra $1,000 as a catch up provision.

What are your options if you don’t qualify for a Roth IRA, or if you want to contribute more?

Permanent Life Insurance: The primary purpose for purchasing permanent life insurance is for the death benefit protection that it provides. However, permanent life insurance offers the ability to build up tax-deferred cash value that can be accessed during your lifetime to generate a stream of retirement income – potentially income tax-free.

If you were a farmer, would you rather be taxed on the seed or the harvest?

Traditional IRA


Taxed as Ordinary Income On Withdrawal


After Tax


$0 Federal Tax For Qualified Distributions

When you save on a before tax basis, such as a Traditional IRA, your contributions are usually tax deductible.

The trade off is all income received is taxed as ordinary income. If you make a withdrawal prior to age

59-1/2 you may incur an additional 10% penalty. This leaves you exposed to potentially higher future tax rates. If you believe taxes are going up this could be devastating to your retirement income. In this example, you are taxed on the harvest.


On the tax-free side, in our example of a Roth IRA, the contributions, i.e., (the seeds), are taxed before they are deposited and both the contributions and earnings may be tax-exempt,1 thereby insulating you from possible future tax rate increases.

To qualify for the federal tax-free and penalty-free withdrawal of earnings, a Roth IRA must be in place for at least five years, and the distribution must take place after age 591/2 or due to death, disability, or a qualified special purpose distribution, which is a qualified first-time home purchase (up to a $10,000 lifetime maximum). Depending upon state law, Roth IRA distributions may be subject to state taxes




Each premium payment you make

Builds cash value income

tax deferred

Cash value that you can use during your lifetime, through policy loans and withdrawals, to provide a tax-free retirement income.

Provides income tax-free death benefit to your named beneficiary

Optional Accelerated Benefit Riders allow you to access the death benefit during lifetime in the event of a Terminal, Chronic or Critical illness

1 Internal Revenue Code § 101(a)(1). There are some exceptions to this rule. Please consult a qualified tax professional for advice concerning your individual situation. 2 Policy loans and withdrawals will reduce the policy’s cash value and death benefit and may result in a taxable event. Surrender charges may reduce the policy’s cash value in the early years. Withdrawals up to the basis paid into the contract and loans thereafter will not create an immediate taxable event, but substantial tax ramifications could result upon contract lapse or surrender. Policy loans will be taxed as ordinary income if the policy is allowed to lapse. It is possible that coverage will expire when either no premiums are paid following the initial premium, or subsequent premiums are insufficient to continue coverage.


• Income tax-free death benefit 

• Tax-deferred build-up of cash value

• Potential for tax-free retirement income 

Tax Free Retirement Strategy 

Using Permanent Life Insurance

Additional Benefits of Permanent life Insurance

Self completing In the event of a premature death,

the income tax-free death benefit would help fund your spouse’s retirement goals.


Access to funds in the event of illness

Accelerated Benefit Riders are available at no additional cost and may allow you to access all or a part of your death benefit to help pay for costs associated with a terminal, chronic or critical illness.


Protection in the event of disability

For an additional fee, many policies offer an optional Waiver of Premium Rider that continues to pay your planned premiums if you became permanently disabled, keeping your policy on track with your original accumulation goals.

Put the power – and tax advantages – of permanent life insurance to work for you today

So what is best for you?

For many people, a Roth IRA is a great tool. However, as mentioned earlier, there are some restrictions as to how much you can contribute and how much income you are allowed to have in order to qualify for a Roth IRA.


Permanent life insurance may be the solution.


If you have someone who depends on you financially, then you may need life insurance. In addition to the death benefit protection, permanent insurance cash value can also serve as an accumulation vehicle, with some great tax advantages. Premiums are determined based on the amount of coverage you need and distributions, through tax-free withdrawals and loans, can generally be taken after your first policy anniversary. Your insurance agent can help you determine the best coverage to meet your goals.


It may be that a combination of the two works best for you.


If you meet the income eligibility requirements for a Roth IRA, but want to set aside more than the contribution limits allow and you have a need for protection, you may want to do both a Roth IRA and Permanent Insurance. Contribute the maximum you can under the Roth and then apply the excess amount to your life insurance coverage.

795 Holcomb Bridge Rd, Suite B

Roswell, GA 30076

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