What is the Distribution Solution?
Most people who diligently save for retirement in a 401(k) or other qualified retirement plan have no idea that they will lose nearly 40 percent of their savings to income taxes when they begin taking distributions. In addition to income taxes, those who fail to take their Required Minimum Distributions at age 70 ½ will be charged up to a 50 percent penalty.
How does the Distribution Solution work?
The Distribution Solution is a tax-favored program for business owners who have successfully saved for retirement using a 401(k) or another qualified retirement plan. The Distribution Solution allows business owners to retain a larger portion of their hard-earned money by repositioning retirement assets into a flexible and permanent life insurance policy, thus allowing potential tax-advantaged distributions.
What’s the benefit of the Distribution Solution?
By transferring your savings from a qualified retirement account to a life insurance policy, your assets are subject to significantly less taxes upon withdrawal each month. You can avoid the stress of figuring out how to pay your taxes each year and actually enjoy your retirement savings that you so diligently accrued.
Also, when your assets are passed on to your beneficiaries, they will receive them tax-free.
How do I know if this strategy is right for me and my family?
It’s your money…until you give it away.