Life Insurance

Retirement Taxes: What is Tax-Free* Income?

Tax-Free Retirement Strategies

Is it possible to retire tax-free*? There are certain tax strategies that could provide you with tax-free* income. For instance, an indexed universal life insurance policy may offer tax advantages that other policies do not.

IULs can be used:

  1. For reducing taxes
  2. To earn more income in retirement
  3. To protect your money against loss

Strategies for Income and Taxes With an IUL

Taxes generally apply to earnings on certain retirement financial vehicles. Also, taxes usually apply when you withdraw money from these vehicles. However, IULs, are taxable differently from other types of life insurance. Although an IUL can be linked to an index, it does not actually invest in the stock market. Therefore, your funds are also safe. As a result, an IUL may provide tax-free* retirement income. Each policy has certain conditions and terms. We can help you determine what options you have regarding retirement taxes.

couple meeting with financial advisor to discuss life insurance retirement taxes cedar rapids ia

Is An IUL Suitable For Retirement?

If you are contemplating an IUL, Flying Eagle Financial can assist you. If you have any current policies, we can evaluate them and provide guidance. To get started, here are some questions to consider about retirement taxes.

  • Will taxes rise in the future? 
  • Can I offset rising taxes in retirement?
  • Is my beneficiary required to pay taxes? 
  • Should I pay taxes now or pay a higher tax later?
Explore Your Options

There are several benefits to IUL. Nevertheless, the impact of future tax rates on your retirement is uncertain. However, you can plan ahead. IULs are one option to consider. Many retirees feel comfortable using an IUL as part of their tax strategy since their principal is safe from market fluctuations, and their income grows tax-free*.

We offer a “Greenline” and a “Tax-Free Retirement” workshop for those who want to learn what their options are.

Contact us to find out to explore what options are available to you regarding retirement taxes.

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