Supplemental Retirement and Security Strategies
Portable After-Tax Retirement and Insurance Plans
The objective of an after-tax retirement and insurance plan
is to provide designated partners/executives with a competitive and tax-efficient program to help save for retirement and plan for financial security. Competitive and tax-efficient, they can be a great employee retention benefit.
After-Tax plans include a comprehensive suite of services:
- Life insurance product analysis
- Integrated online application process complete with e-signature
- Institutional pricing
Amounts contributed to the plan grow tax deferred and are tax efficient if held to mortality. The policy values may be accessed on a tax-efficient basis through the use of withdrawals and policy loans to generate additional retirement income or to pay for financial events prior to retirement, (e.g., college tuition, second home).
Specially Designed and Priced Life Insurance
An after-tax insurance plan is portable, and provides a low cost life insurance benefit that can be a valuable financial planning tool as well as an estate planning tool. Best of all, it is funded through payroll contributions like any other retirement plan, and the benefit is determined based on the amount the participant and/or the company contributes via automatic payroll deduction.
You can access your cash value through loans and withdrawals. In general, loans are charged interest; they are usually not taxable. Withdrawals are taxable only when you take more money out of the policy than you've paid in premiums. Loans and withdrawals may reduce or eliminate the death benefit payable to your beneficiaries. Insurance products are designed for institutional investors.