exploreClarion.com

CLARION, Pa. (EYT) – Michael Patton, of Patton Financial Advising, submitted the following article: How Life Insurance Could Help Mitigate Taxes in Retirement.

Higher taxes could follow in the wake of soaring government spending on pandemic relief measures — a likelihood that shines a new light on the tax advantages of life insurance. Permanent life insurance offers a tax-free death benefit, and a portion of each premium goes into a cash-value account that accumulates on a tax-deferred basis. The policy owner may also access the cash value, if needed, without triggering income taxes.

Assets in tax-deferred retirement accounts will eventually be taxed as ordinary income, whether distributions are taken by the current owner or a beneficiary who inherits the account. Thus, taxpayers with well-funded retirement accounts should bear in mind that today’s historically low income tax rates are scheduled to expire after 2025.

Taking IRA distributions while taxes are low and shifting the money to life insurance could provide a hedge against future tax increases. Here are three ways in which permanent life insurance can be used to fund retirement and estate strategies.

Read the full article here: https://www.pattonadvising.com/How-Life-Insurance-Could-Help-Mitigate-Taxes-in-Retirement.c9950.htm

Patton Financial Advising
51 N. 4th Avenue
Clarion, PA 16214
814-226-9400
Toll-free 1-877-547-2751

Visit website: www.pattonadvising.com

Securities offered through Cetera Financial Specialists LLC, member FINRA/SIPC. Advisory services offered through Cetera Investment Advisers LLC. Cetera entities are under separate ownership fhttps://www.exploreclarion.com/?p=353744rom any other entity.

(Photos by Dave Cyphert of ProPoint Media Photography)