Either way, life insurance cash values
can help meet these needs so your client doesn't have to tap into qualified plan resources or other assets.
Ed is an accountant who explains that the most important benefit in our tax code is the tax exclusion for life insurance cash values
and death benefits if the policy is established correctly.
This alternative approach views life insurance cash values
as a tax-advantaged sinking fund.
Taxing the internal buildup of life insurance cash values
on an accrual basis
Annuity benefits would likely come from using accumulated life insurance cash values
Traditionally, SERPs have been informally funded with cash, equities or life insurance cash values
to ensure that the necessary cash flow is available at time of payout.
As a safe haven from future potential creditors--In many cases life insurance cash values
are afforded significant protection under state law from the claims of creditors.
Dulisse says tax-free assets should be withdrawn first, such as Roth IRAs, life insurance cash values
or annuities issued before 1982, where principal can be drawn first.
If properly structured, the The life insurance cash values
arrangement will avoid the increase year by year and are expense and litigation which available for emergencies and may be involved if the Internal financial opportunities Revenue Service challenges the value of the business for estate tax purposes.
Life insurance cash values
can be thought of as a separate asset class, with distinctive risk and return characteristics that might make it appropriate as a savings vehicle for retirement, education, or other goals.
5) These settlement options are similar to those available with most life insurance cash values