An opportunity for inherited qualified funds

An opportunity for inherited qualified funds

On December 20, 2019, Congress passed into law provisions from the Setting Every Community Up for Retirement Enhancement (SECURE) Act. This landmark legislation provides the most significant changes to the retirement industry in more than a decade and makes investing for retirement more accessible to millions of Americans.
How does this impact long-term care planning?
First, the legislation eliminates the concept of “stretch IRAs,” which extended the tax-deferred status of an inherited IRA when it passed to a non-spouse beneficiary. The beneficiary could “stretch” the life—and the associated tax advantages—of an IRA over decades. Under the new law, non-spouse beneficiaries are required to take out all funds from their inherited IRA within 10 years of the death of the original account owner. Second, due to increased life expectancies, Required Minimum Distributions (RMDs) aren’t required to be taken until age 72, up from 70.5.
Asset Care Qualified Money strategy
Do you have clients expecting to inherit qualified funds who are unsure of how to reposition their required RMDs? Use Asset Care Annuity Funding Whole Life to help turn an inherited, taxable part of an estate into a tax-free income stream to pay for qualified long-term care!

  • Encourage a direct rollover of the inherited account into Asset Care Annuity Funding Whole Life.
    • An income based benefit is applied, so you get an increased benefit for each dollar.
  • Distributions are taxable, but automatically spread over the newly required 10-year period.
    • There’s no 10% penalty if the inherited IRA contract owner is younger than age 59-1/2.
  • You can even add a spouse to the protection so both can benefit.
  • Use the Lifetime Continuation of Benefits to reposition the inherited funds and create tax-free distributions for qualifying LTC services… for LIFE!

Contact the OneAmerica Sales Desk for more information on this and other strategies to convert qualified funds into lifetime income streams for LTC!

An opportunity for inherited qualified funds