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Best Life Insurance can assist you in setting up a Tax-Free Retirement Plan.

Signing up for a retirement plan is something that we encourage many clients to do. When it comes to ensuring and securing your income for the time you retire, it shouldn’t be something that you have to think about.

By having a plan now, you can rest and have peace of mind in the future. This is because you know that by the time you retire, you will be set and settled. So, while you have the chance, now make plans for your retirement season.

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The steps to getting a plan that works for you are actually quite simple. In fact, many employers help get the ball rolling by suggesting the amount they will contribute to the account. Some even recommend insurance companies or help open an account for you.

The insurance agents at Best Life Insurance will explain all the different options you have to choose from. In addition, they will assist you in picking the Tax-Free Retirement Plan that would be best for you. Once you’ve decided which plan you would like, they will walk you through the process.

It can be as simple as that. When you have great insurance agents by your side during the whole process, you don’t have to worry about anything. If you choose the Best Life Insurance agents to assist you, this is what you’ll get.

What does it mean to have a Tax Free Retirement Plan?

A retirement plan is an account that basically accumulates money for you towards your retirement. In this plan, contributions by you and sometimes your employer can be made. There are a number of plans that you can choose from, but not all of them are Tax-Free Retirement Plans.

The majority of the retirement plans out there actually participate in tax-free growth. This simply means the money contributed into an account grows without being taxed on the growth. This is beneficial and means that your retirement funds can grow without being affected by tax. But most of them are not tax-free when it comes to withdrawal, and this is what makes a Tax-Free Retirement Plan tax-free.

Once you retire, you have the opportunity to withdraw some or all of your money when you like. With a tax-deferred account, which is what most retirement plans area, the money withdrawn is taxed. The tax rate for the year it is withdrawn is what is used.

With a Tax-Free Retirement Plan, whenever you’re ready to withdraw, you can do so, and the amount withdrawn will not be taxed. The federal and state government will not tax that amount. This means you get to have more of the money you have acquired for your retirement.

The type of Tax-Free Retirement Plan

One word makes a retirement plan a Tax-Free Retirement Plan, and that word is Roth. For a tax-free plan, there are mainly 2 kinds, Roth IRA and Roth 401k. Both of these are established retirement plans and are not always Roth.

You already may be a little familiar with these retirement plans. For both, contributions can be made, and that is something that goes for more retirement plans. In addition, it is common to see employers set these up for their employees and even contribute a certain amount. This is usually decided when the employee is signing their employment contract.

Both originally, these plans are not tax-free; they are tax-deferred. Like we said before, with a tax-deferred plan, tax is paid when a withdrawal is made. But these can be turned into Roth accounts, and this ultimately makes them tax-free.

Both of these accounts can be set up by an insurance company, and the process is fairly simple. When you come in to talk to an insurance agent, they can go into detail about the major difference between both of them. But what is important is both of these can be turned into Tax-Free Retirement Plans.

Benefits and Advantages

I know that we are probably thinking the same thing. The benefits and advantages of having a tax-free account are that the account is tax-free. You are absolutely right. In fact, that is the main reason why people look into this kind of plan.

When it comes time to retire, many don’t have an extra income that they can rely on. With the majority of retirement plans, when a disbursement is made, the account owner has to pay income tax on it. This just reduces the amount of money that they have to use.

The great thing with a tax-free account is the total amount that you have in the account you can use as you please. There is no thinking about tax, and considering how much you’ll have after that is taken into consideration. This is why so clients like to choose this plan.

All the funds in the account are yours to utilize during your retirement. You can start making withdrawals from the age of 59 ½ or whenever you decided you’re ready to retire.

Having a tax-free account is the best advantage of this plan, and that is a reason why you should consider it. If you have any questions about a Tax-Free Retirement Plan, give a call to our amazing team, and they will be happy to answer those for you.


Tax-Free Retirement Plan

If you are thinking to yourself, “I already have a 401k plan,” or “ I already have an IRA plan,” that is even better. You can turn those plans into Roth plans and make them tax-free. Our insurance agents will take you through the process.

And if you are thinking about moving a plan that you have or merging multiple accounts because you’ve changed employers, we can do that for you as well. At Best Life Insurance, we make sure that all our clients get the best retirement plans and can complete rollovers if they are looking to do so.

So, give us a call today to get started with your Tax-Free Retirement Plan.

Not sure where to start? Fill out our unique form and we will find the best life insurance for you.