Summerlin Benefits Consulting Q&AAnswer
Nov 22, 2024 - 02:31 PM
The tax changes under the TCJA, particularly the anticipated increases in tax rates and reduced exemptions in 2026, will likely affect retirees by raising their taxable income. This can result in higher taxes, especially for those with pre-tax retirement accounts like IRAs or 401(k)s. An FIUL policy can help mitigate these effects by offering tax-free growth, tax-free income withdrawals, and tax-free death benefits. By using an FIUL, retirees can reduce their tax obligations, avoid depleting their savings, and manage long-term care expenses without increasing their tax burden.
