The Impact of Taxes in Retirement

There is a lot of anticipation as to whether taxes are going to increase in the near future, and that is stirring up buzz about tax efficiency. Clients are looking for solutions to help them protect their family as well as ensure that their retirement needs are met. But many are overlooking the impact that taxes could have on their overall plan. In fact, distributions from a 401k/IRA could be compounding tax problems annually, potentially reducing the longevity of the qualified plan.

Permanent life insurance can not only help take care of clients’ protection needs, but it can also be used as a hedge against multiple risks including taxes. Tax-free distributions from life insurance are non-tax reportable and can potentially increase the longevity of existing retirement plans. To learn more about how permanent life insurance can serve as a backstop to retirement plans, read our latest Planning in Action.