Taxes are set to increase in 2025
The Tax Cuts and Jobs Act (TCJA) will expire at the end of 2025, automatically reverting most Americans back to a higher tax environment.
David Walker, CPA former Comptroller General of the United States, head of the Government Accountability Office (GOA) anticipates that Federal Tax rates may be doubled by 2030 in order to service the interest on 32 Trillion in National Debt, and fund Social Security and Medicare which are at the risk of insolvency.
What plan do you have in place to shield yourself from giving away even more money to the government?
Investors understand that tax increases will negatively impact their 401(k)s, IRAs, and investment accounts. People are looking for ways to shield their hard-earned money from a rising tax environment. Commonly considered strategies include tax exempt vehicles such as Muni Bonds, Roth IRAs, Roth 401(k)s and the most tax advantaged, High Cash Value Life Insurance.
America’s CPA and top IRA expert Ed Slott famously said, “The Tax Exemption for Life Insurance is the single biggest benefit in the Tax Code”.
Now, what we are talking about are not ordinary off the shelf Life Insurance policies. These are specially designed and structured strategies often referred to as one of the following: Max Funded IUL, Overfunded IUL, ‘Rich Persons Roth’ or Life Insurance Retirement Plan (LIRP).
The purpose of these strategies fly in the face of traditional wisdom when one typically thinks about the use of Life Insurance. Individuals want to buy as much Life Insurance for its death benefit as they can, at the lowest out of pocket cost possible. However, these strategies revolve around designing and funding specific types of policies in a way which focuses on rapidly growing large sums of compounding tax-free cash inside of the policy, while maintaining the least amount of Life Insurance death benefit allowable under IRS guidelines.
Unlike retirement plans such as IRAs, 401(k)s, SIMPLE, SEPs etc; the cash value within these policies can be accessed at any time for any reason without penalty and are not exposed to losses in the stock market. Policy distributions can be taken tax-free, distributions are not considered income, thus, completely off the radar screen of the IRS.
Call us at (248) 362-1313 or e-mail us to see if you are a fit
