Life Insurance and Retirement Planning: Tax Issues

Tax-Deferred Growth The Tax Court has held that cash values are not constructively received by a taxpayer when he or she could not reach them without surrendering the policy. The necessity of surrendering the policy constituted a substantial limitation or restriction on their receipt (Theodore H. Cohen, 39 TC 1055, acq. 1964-1 CB-4). FIFO Taxation of Withdrawals…

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Women: Moving Forward Financially after the Loss of a Spouse

The loss of a spouse can be a devastating, life-changing event. Due to longer life expectancies, women are more likely to face this situation. According to the U.S. Census Bureau, 40% of women age 65 and older are widows compared to 13% of men, and it might surprise you to know that women are widowed at an average age of 56.*…

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Use Business Life Insurance for Tax Planning

What is it? Life insurance is an important feature of many business arrangements. Some of its more important uses are as follows: Funding buy-sell agreements Providing an employee benefit Insuring a key employee Guaranteeing a business loan Using business life insurance for these purposes raises many tax issues and presents many tax-planning opportunities. It’s important…

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Strategies Using Life Insurance

What is it? Life insurance is not only about protecting your survivors in the event of your death. Depending upon the type of policy you purchase, it can also enable you to meet specific life goals: retiring comfortably, paying for your child’s education, accumulating wealth, and paying for estate costs. If you own a business, life insurance can even fund…

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