Lifetime Tax-Free Income

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Lifetime Tax-Free Income

Lifetime Tax-Free Income means your accumulated balance will last from the time you retire and decide to begin removing your funds, until the day you die, even if you live to be 120 years old! 


Here Is how it works

Tax-Free loans are available from your accumulated cash value at any age, without penalties or early withdrawal fees. When you borrow from your account, your accumulated balance stays intact, and continues to earn interest and compound. Your loan is a separate transaction. This means that you are not losing interest on your accumulated balance. Since the loan amount is usually much lower than what you are earning, you are still earning interest on money you borrowed. This is called “arbitrage”.  This is not usually available in 401k’s, 457’s, or IRA’s. When you remove money from those types of accounts, your earnings reduce as you remove money from it.

Frequently Asked Questions

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There is no maximum amount, but you need to earn at least $50K in “household income” to apply.

Most (nearly all) retirement plans such as 457B’s, 401K’s, IRA’s, 403B’s…even Social Security, are “taxable” which means you are taxed at the prevailing (current) tax rate, as you receive the money. Just like as you work now and your wages are taxed, so are retirement accounts. Tax-free Roth IRA’s and Tax-free Roth IUL’s are free from taxes, meaning the money receive is net, after tax and is not reportable as income. This can save the average taxpayer as much as 20% to 25% each year on taxes.

Yes, you can have both and the limits from your Roth IRA do not affect how much you can put into your Roth IUL, and the reverse is true as well. 

Accounts that are “indexed” are not invested in the stock market, but instead only copy the gains of the stock market, but NOT the losses. You are protected against market downturns of any kind.

William Roth, the Senator from Delaware (1971 – 2001) who was the namesake of the Roth IRA, is the inspiration behind the Tax Free Roth IUL. Our agency, Life Legends adopted the name “Roth IUL” as a description of the tax-free aspect of the Roth IUL. If you click on this link (link to Roth IRA vs Roth IUL) for a full comparison. But, both allow you to remove money in retirement Tax-Free.

IUL is the abbreviation for Indexed Universal Life. When something is Indexed, it means that it follows a certain kind of strategy (S&P 500, or Bloomberg… or some other earning strategy) and it mirrors the activity of how it performs in the market. Universal Life is a permanent cash value life insurance plan that includes “living benefits” as well. It is through this component of the Roth IUL, that allows it be tax-free income.

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