Buy Life Insurance With IRA Funds
Can you buy permanate life insurance with IRA funds? If so based on IRS rule t2 do you have to pay ordinary tax and additional 10% penalty on the amount you withdraw to pay your premium for the policy?
Thanks.
Can you buy permanate life insurance with IRA funds? If so based on IRS rule t2 do you have to pay ordinary tax and additional 10% penalty on the amount you withdraw to pay your premium for the policy?
Thanks.
Permalink Submitted by Alan - IRA critic on Sat, 2015-11-21 00:15
Yes, you will owe ordinary income tax on the IRA distribution and also the 10% penalty unless you have reached 59.5 or qualify for another one of the penalty exceptions.