The Protected IRA Plus Program ™

Paul Himmelstein CLU, ChFC
Himmelstein Financial

THE STORY

Most people are distracted now…

January 1, 2020: The US Government passed a new tax act called the SECURE Act.

The act was meant to give the government increased taxes and reduced deficits, not to make the American citizen more secure. If the government needed our money before the pandemic, they really need our money now!

One of the largest assets of the American people are their retirement plans.

This pool of money has never been taxed.

The SECURE Act will make seniors insecure.

What does that mean to you?

Taxes. Taxes. Taxes.

This affects qualified money: IRA401K, 403B, 457, and SEPs

Two parts to the SECURE Act every senior needs to know:

  • The Stretch IRA was eliminated
  • It extends the RMD age to 72

The government not only wants more of your assets, they want them quicker.

THE CONSEQUENCES

Consequences of Stretch IRA Elimination

Forced Distributions = Ten Year Tax Curse

  • Higher tax bracket for surviving spouse
  • Higher taxes for children or other beneficiaries
  • Biden has promised to raise taxes in wealthier income brackets
  • The stock market is unpredictable

Consequences of RMD Extension to 72

Forces larger distributions, which are more taxable

The following common realities compound the need for seniors to take larger distributions:

  • 47% of seniors aged 65 will pass away before life expectancy
  • 70% of people over 65 will need extended care
  • 90% of couples over 65 will need extended care for one or both members
  • Most seniors will scramble for money

CLIENTS’ CONCERNS

  • Running out of money before running out of breath
  • Losing their assets and income stream to market losses, or the need for extended care
  • The taxation of their income
  • Leaving the most money possible to their beneficiaries instead of to the government

There are different versions of the Protected IRA Plus Program to address different concerns:

  • Guaranteed income
  • Meeting potential extended care
  • Tax free income in the future

INTRODUCING

The Protected IRA Plus Program ™

The Protected IRA Plus Program is a combination of products that have the following components:

DISTRIBUTION

PROTECTION

TAX FREE ACCUMULATION & INCOME

AN EXAMPLE

The following example is just one of the designs. This design guarantees income after taxes to the client for their lifetime and protects the asset from market loss or if the client needs extended care.

All designs return at least the original amount back to the beneficiaries tax free, if that is what the client desires.

The client always has the choice of leaving less to their heirs and obtaining a higher guaranteed income for life. (Tradeoffs particular to the client of either leaving more to heirs or having higher guaranteed income). 

GRAPHIC ELEMENT (LATER)

Fill out our Fact Find

  • Take inventory of all your investable assets.
  • Classify as far as type: Qualified vs. Non-qualified
  • Classify who owns the assets: single, joint
  • Make sure you identify what’s important to you and your family

The Protected IRA Plus Program will benefit someone who wants:

  • more net income after taxes and expenses
  • protection from market loss
  • coverage for the needs of extended care

All designs return at least the original amount tax free to beneficiaries. Each plan is customized for your concerns.

For a complete Protected IRA Plus Program analysis, contact us! Expect a call back from Paul or a staff member to follow up.

paul@himmelsteinfinancial.com