If you have recently inherited an IRA, you may wonder what to do with it. While you can keep the money in the account and let it grow tax-deferred, other options may offer tax savings. One option is to convert the IRA into an annuity. This can help offset some of the taxes owed on the inheritance. Here’s how it works.
How To Offset Taxes On Inherited IRAs An Annuity
Looking for ways to reduce taxes on future Inherited IRAs or Qualified funds for an Estate Plan?
How about the ability to withdraw Required Minimum Distributions (RMD) and preserve the original principal in most cases?
With Inherited Qualified Plans, non-spousal heirs must pay the taxes on inherited death benefits all at once or take a payout (5 Years or Life).
Today I want to go over a quick and easy solution to doing just this.
Utilize the Legacy ClassicMark (Americo) with the Heritage Maximizer rider.
The Heritage Maximizer rider will provide a 30% bonus over the total accumulation value at death in a lump sum.
Take notice of the Enhanced Death Benefit column on the far right of the illustration below. This is the value heirs will inherit.
To become eligible for this benefit, the client must be age 75 years or younger when opening the ClassicMark annuity contract and live for three years.
See my ClassicMark review above for all the details.
Sales Tip* – Double Dipping the 30% Bonus
Let’s say a client purchases this annuity with the rider and then dies.
The spouse can inherit the enhanced death benefit (lump sum), then open up a new ClassicMark contract with the Heritage Maximizer (as long as she meets the requirements mentioned above), and pass another enhanced benefit to the next set of beneficiaries (aka the children/grandchildren).
Take a peek at the sample illustration below.
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