Client Makeover: Tax Mitigated Roth Conversion

Client Makeover: Tax Mitigated Roth Conversion

Helen is 62 years old with a Traditional IRA valued at $500,000.  She does not need income from the IRA in the near future but will most likely need income from her IRA in several years.  Helen believes that taxes will be going up in the near future. Knowing that her IRA distributions will be fully taxable, she has been looking at doing a Roth Conversion.  The concern Helen has with the Roth Conversion is the upfront taxes she will have to pay.

Here Is What We Did:

We recommended that Helen park $250,000 into a Tax Advantage Life Insurance Policy and position the other $250,000 into aRoth Annuity with a high bonus and payout.  To cover the taxes for the conversion, Helen takes a Tax Free Loan against the Life Insurance policy.  By age 72, the Life Insurance has a Tax Free death benefit of $417,812 and the annuity will payout $32,930 per year Tax Free for Life! (The annuity in this scenario also included a Home Healthcare Doubler which would double the income up to $65,860 per year for up to 5 years should the need arise!)

Over 15 years, that is a Tax Free income of $493,950 with an additional Tax Free Death Benefit of Approx. $400,000 for Estate/Legacy Planning!!

How Did We Accomplish This?

Call us today for a personalized illustration with detailed explanation.

Toll Free (800)325-8907


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