Don’t let taxes decide how you retire.
Most clients focus on how much they put away and overlook how much they’ll keep. Learn how the way you save can change your after-tax retirement income.
Tax-deferred doesn’t mean tax-free
Traditional 401(k) and IRA withdrawals are generally taxed as ordinary income, and future tax rates are uncertain. Diversifying how your savings are taxed can give you more control later.
Roth-style accounts are funded with after-tax dollars, and qualified withdrawals can be tax-free. Contribution and income limits apply.
Traditional 401(k)s and IRAs defer tax until withdrawal, when required minimum distributions and higher brackets can apply.
Certain permanent life insurance strategies, such as Indexed Universal Life, offer different tax treatment. We explain how they work and the limits.
Indexed Universal Life (IUL)
For some clients, permanent life insurance with cash value can add a tax-advantaged bucket to a retirement plan, alongside a death benefit that protects their family.
Life insurance with cash value potential
- How it works
- Permanent life insurance with a death benefit and cash value. Cash value growth is linked to a market index (such as the S&P 500) through a crediting formula, without investing directly in the market.
- What you get
- Death benefit protection, index-linked interest credits with a floor against index losses, and access to cash value through policy loans and withdrawals.
- Tax treatment
- Cash value grows tax-deferred, and properly structured policy loans and death benefits are paid tax free.
- May suit
- Clients who want family protection plus a flexible, potentially tax-advantaged way to build cash value for retirement, business expansion, or paying off debt.
Topics we walk through with you
- How different account types are taxed in retirement
- How Indexed Universal Life can fit into a tax-smart plan
- Building a mix of taxable, tax-deferred, and tax-advantaged income
- How retirement income can affect Social Security taxation
- Protecting principal while still growing savings
- Coordinating with your CPA or tax professional
Start the conversation
Explore our free videos and guides, or book a one-on-one call to see how a tax-smart approach could apply to you.