When Taxes Will Apply to a Life Insurance Death Benefit

When Taxes Will Apply to a Life Insurance Death Benefit

The common misconception is that life insurance is not subject to taxation, which is half-true and half-false. Life insurance is almost always not subject to income taxation; however, under current tax law (2003), it is still subject to estate taxation. As a general rule, life insurance death proceeds are excusable from the beneficiary’s gross income (IRC Sec. 101(a)(1)). Death proceeds from single-premium, term life insurance, periodic-premiums, or flexible premium life insurance policies are received income…

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When Should I Withdraw from My IRA?

When Should I Withdraw from My IRA?

Consumers approaching retirement may be faced with various investment decisions.

Purchasing a life insurance policy is one option for those hoping to ensure their survivors’ financial security. Traditional and Roth IRAs may also be beneficial. However, rolling funds from a 401(k) to this kind of investment may be difficult for some, according to a recent report by the Wall Street Journal, with many employers hoping to hold onto their workers’ savings.

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