Using IRA money to fund LI
I was watching a recent PBS special where Mr.Slott talked about being able to take money from an IRA account to pay for a life insurance contract and not be taxed on the money. My CPA does not think we can do this. So could you please give me more detail on how this is done. Thanks jeremy
Permalink Submitted by Jeremy smith on Tue, 2008-08-19 19:50
I was pretty sure it was to make the distribution nontaxable
Permalink Submitted by Dennis Van Dusen on Tue, 2008-08-19 20:59
Its exactly the way tomd explained. Mr. Slott made reference that you could pay the tax on the distribution and buy a lot of life insurance with a portion of remainder, so the beneficiaries would be taken care of and the IRA owner could enjoy the money after tax.
Permalink Submitted by Al Fry on Tue, 2008-08-19 22:18
BTW, I was at the same table with Ed and Laurin (his business partner) on a dinner cruise last week, and apparently this program on PBS has had overwhelming success.
Permalink Submitted by Bruce Steiner on Wed, 2008-08-20 00:17
Or you (or your donees) could invest the required distributions in any other investments you (or your donees) selected. Which investment will turn out better will depend upon investment returns, and in the case of life insurance, how long the insured lives.