Life Insurance w/IRA funds

Submitted by Rose Robins on Wed, 2016-06-08 17:23

Can you buy life insurance policy with IRA funds?



Submitted by Alan - IRA critic on Wed, 2016-06-08 23:08

No. A taxable IRA distribution must be taken and the insurance purchased from the proceeds.



Submitted by Rose Robins on Wed, 2016-06-08 23:45

can you do as a 1031exchange?



Submitted by Alan - IRA critic on Thu, 2016-06-09 00:36

No. You are referring to a 1035 exchange, which are limited to the following:

What are “like-kind” exchanges that qualify for 1035 Exchanges?

  • Life insurance for life insurance
  • Life insurance for endowment
  • Life insurance for non-qualified annuity
  • Endowment for endowment, with a maturity not later than the original endowment
  • Endowment for non-qualified annuity
  • Non-qualified annuity for non-qualified annuity


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