Taxes on Retirement Income

Tax-free* options

Options for Tax-Free* Retirement

Do you have to pay taxes on retirement income? Choosing the right tax strategy could potentially provide you tax-free* income. For example, a properly designed Indexed Universal Life Insurance (IUL) may provide tax advantages other policies do not.

The Purpose of Using an IUL Is To:
reduce taxes
Increase your retirement income
Protect your money loss

Life Insurance And Taxes on Retirement Income

In general, life insurance is not thought of as a source of retirement income. Retirement earnings are normally taxed. Normally, most withdrawals made are taxed. However, life insurance policies, such as IULs, are not taxed the same way. IULs are not actually investment vehicles, though they can be linked to an index. Therefore, your money is not at risk. This means you may receive tax-free* retirement income. Certain conditions apply to all policies. Contact us to find out what options are available to you regarding taxes on retirement income.

What Are Your Options?
senior couple sitting on beach looking out toward the water taxes on retirement income warwick ri
woman on the beach with her hands up in the air taxes on retirement income warwick ri

Can I Retire With an IUL?

GPS Retirement can help you determine if an IUL is right for you. We can evaluate any current policies you have and guide you in the right direction. The following questions are a good place to start. 

  • Are taxes likely to rise in the future? 
  • Is there any way I can offset rising taxes in retirement?
  • Do my beneficiaries have to pay taxes? 
  • Is it better for me to pay taxes now or paying higher taxes later?
Find Out What Options Are Available

IUL offers a number of benefits.  How future tax rates affect your retirement is unknown. You can, however, plan ahead. IUL insurance might be worth exploring. In many cases, retirees feel confident about employing an IUL in their tax strategy.  Their principal is secure from market fluctuations, and its income is tax-free*.

We offer “Greenline” and “Tax-Free* Retirement” workshops to learn what options are available.

Please feel free to contact our office for a no-obligation, no-cost meeting.  We can help you plan a strategy for taxes on retirement income using an IUL policy.

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Agent License: RI 2107977
Agency: RI 3000099829
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*Proceeds from an insurance policy are generally income-tax-free, and if properly structured, may also be free from estate tax. Income-tax-free distributions are achieved by withdrawing to the cost basis (premiums paid), then using policy loans. Loans and withdrawals may generate an income tax liability, reduce available cash value, and reduce the death benefit, or cause the policy to lapse. This assumes the policy qualifies as life insurance and is not a modified endowment contract. The Host and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. This content is not intended to serve as the basis for any investment or purchasing decisions, nor does it recommend or involve the purchase, holding, or sale of a security.  All figures herein are hypothetical and for illustrative purposes only to explain general concepts.  No figure is to be relied upon as being accurate nor a guarantee or projection and is meant only as a partial overview of some relevant features and benefits of general insurance products that may be in the marketplace, and whose availability will be dependent on the State of residence of the consumer, and their individual suitability for the product they are wanting to purchase. Where insurance products are mentioned, any and all guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.

IMPORTANT CONSUMER INFORMATION
Any media logos and/or trademarks used on this website are the property of their respective owners and no endorsement by those owners of the advisor or firm is stated or implied.We are an independent financial services firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. *Any references to protection benefits or steady and reliable income streams on this website refer only to fixed insurance products. They do not refer, in any way, to securities or investment advisory products. Annuity guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by insurance company. Annuities are not FDIC insured. The information and opinions contained in any of the material requested from this website are provided by third parties and have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. They are given for informational purposes only and are not a solicitation to buy or sell any of the products mentioned. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

By contacting Tom Guidici RI Lic. #2107977/ GPS Retirement RI Lic. #3000099829, you may be offered information regarding the purchase of insurance products, including fixed index annuities and life.

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