Scott (64) has an excellent retirement plan at his company. While he and his wife, Jennifer, don’t save or invest much themselves, Scott has accumulated substantial investments inside his qualified plans and IRAs. They continually marvel and take pride in how much they see in his statements each quarter. It makes them feel confident about their future. Scott has elected not to have much life insurance because they are confident the money will be there to support Jennifer in the event of Scott’s death.
Unfortunately, Scott and Jennifer did not take into account the taxability of distribution from those plans. At Scott’s death, Jennifer would have had to pay both federal and state income taxes on that money – significantly reducing the anticipated funds intended for her support.
Concentrix partners showed Scott a way to convert those funds accumulating in his qualified plans and IRA into tax-free funds to support Jennifer – or continue accumulating for distribution to their children tax-free.
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