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Taxes and Your Retirement Plan

“In this world nothing is certain except death and taxes.” -Benjamin Franklin

When it comes to taxes, however, at least

you can alter the timing a bit!

If you’re working in your career and believe that you will be paying a lower tax rate after you retire, it makes sense to delay taxes as much as you can. Participating in your employer’s 401(k) plan can be a great way to delay taxes. So can making a traditional IRA contribution or opening an annuity.


  • 401(k)
  • Traditional IRA
  • Annuity


  • Roth 401(k)
  • Roth IRA
  • Life Insurance

For more information watch the following 4 minute informational video:

Tax free retirement income

family pictureOn the other hand, if you’re concerned about today’s government budget deficits and believe you will be paying a higher tax rate in the future, you should consider participating in your employer’s Roth 401(k) plan and converting your traditional IRAs to Roth IRAs or cash value life insurance. Per I.R.S. Code 7702, by converting the IRA to a properly structured cash value life insurance policy, you’re able to enjoy tax-deferred growth and tax-free retirement income. You’re also protecting your principal and credited interest from the risk of market loss while earning a competitive rate of return. Such a conversion is basically a decision to pay taxes now to avoid paying potentially higher taxes later. Once your money is in a permanent life insurance policy or Roth IRA, you have the opportunity for it to grow completely free of any future income taxes.Or, are you retired and don’t really like that you are forced to take required minimum distributions from your IRAs starting at age 70½? If you plan to use your IRA to benefit your heirs, that may be best accomplished by using those unwanted distributions to buy life insurance. Since life insurance benefits are paid free of income taxes, the life insurance would most likely provide a much higher after-tax payment to your loved ones. For more information reach out to us. We’re happy to assist you and your loved ones.The information provided here has been taken from third party sources and is deemed to be reliable, but is not guaranteed.
It is provided for informational purposes only, and you should consult with a tax advisor for further information.
Our organization does not provide tax advice.