March 17, 2021

Qualified Funds for LTC

You probably know some clients who have IRAs, 401(k)s or 403(b) accounts.

Qualified dollars have their issues

You can’t avoid eventually paying taxes on pre-tax money that grows tax-deferred.
Required Minimum Distributions (RMDs): Money needs to be taken out beginning at 70 ½, whether your client wants it or not.
When qualified money passes to heirs at death, it is taxed at the heir’s current tax rate.

Our solution

Reposition qualified money into Asset Care Annuity Funding Whole Life via direct transfer or rollover.
The income base is credited with up to a 20% bonus.
Annual distributions fund a 10-pay whole life policy that can be used for qualifying long-term care.
LTC benefits can be payable for the lifetime of both insureds.
The death benefit passes to heirs at death generally tax-free.

Even better

Qualified money is reserved for LTC expenses — no need for your clients to deplete their portfolios at an inopportune time.
Cover both spouses using one qualified account with no ownership issues.
Annual distributions over 10 years count toward satisfying RMDs.
Death benefit can help offset taxes owned on other legacy funds left to heirs.

Over 100 million

Number of Americans that participate in defined-contribution plans

$7.5 trillion¹

Number of Americans that participate in defined-contribution plans

1. How America Saves 2019, Vanguard, https://institutional.vanguard.com/iam/pdf/HAS2019.pdf