SALES WEEK: Case Studies and Resources to Tap the Inherited/Stretch IRA Market

Inherited/Stretch IRA Business Accepted by EquiTrust

Case examples and sales resources to help you tap this lucrative market

After a temporary suspension of new sales due to SECURE Act rule changes, Inherited/Stretch IRA business is back at EquiTrust!

When your client is a beneficiary of an IRA, a variety of options are available depending on the relationship to the original owner, which likely falls into one of two categories:

Eligible (Stretch IRA)
Ineligible (Inherited IRA)

Hypothetical Example #1

Stretch IRA Advantages

Phyllis, 50 – Eligible Beneficiary
As a sibling of the deceased that is within 10 years of his age, Phyllis has two options in assuming ownership of an IRA account owned by her deceased brother, Richard, who died at age 55.

Scenario A
Phyllis can pay the income taxes in the tax year of Richard’s death and invest proceeds at a 1.25%* taxable rate.

Richard’s IRA Value at Death
24%* Income Taxes Applied
After-Tax Proceeds

Account Value after 1.25%* Growth for 10 Yrs

$100,000
$24,000
$72,000

$83,537

Scenario B
Phyllis can Stretch the IRA and take RMDs based on her starting age of 50, while earning 1.25%* on the account value.

Richard’s IRA Value at Death
Taxes paid on Account Value end of Year 10
After-Tax Ending Value
Total After-Tax* RMDs Taken Over 10 Yrs
Ending Value Plus Total RMDs

$100,000
$20,246

$64,113

$20,629

$84,742

For more complete rules pertaining to RMDs, see the Inherited/Stretch IRA Rules piece linked referenced below.

Hypothetical Example #2

Inherited IRA Advantages

Damon, 40 – Ineligible Beneficiary
As son of his deceased mother, Damon has two options in assuming ownership of an IRA account owned by his mother, Joan.

Scenario A
Damon can pay the income taxes in the tax year of Joan’s death and invest proceeds at a
1.25%* taxable rate.

Joan’s IRA Value at Death

24%* Income Taxes Applied
After-Tax Proceeds
Account Value after 1.25%* Growth for 10 Yrs

$100,000
$24,000
$76,000
$85,537

Scenario B
Damon can place the account value in an Inherited IRA, and pay taxes on the account value at the end of 10 years.

Joan’s IRA Value at Death
1.25%* Growth for 10 Years
24%* Income Taxes Applied
After Tax Ending Value

$100,000
$113,227
$27,174
$86,053

*The 1.25% annualized growth rate and 24% tax bracket are for illustrative purposes, are applied consistently for the example periods, and should not be considered representations of current, future or guaranteed growth rates or tax rates.

Printed Resources Available Now

Restart your sales with these new Inherited/Stretch IRA resources – available in print or PDF. Order your supply from the Agent Gateway Website, at the Forms & Materials tab; login is required.

New Inherited/Stretch IRA Brochure

Let your clients know that you can assist with their Inherited and Stretch IRA needs by providing the new Inherited/Stretch IRA brochure (ET-INHERSTRCHIRA). Printed brochures available. To view, Click here.

Learn the Rules

Before engaging in any Inherited or Stretch IRA business, be sure to read “Inherited/Stretch IRA Rules” for detailed information. This piece may be shared with your clients.

Printed supplies (ET-INHRSTRCHIRARULES) available through the Agent Gateway Website, Forms & Supplies tab.
To view, Click here.

Webinar Replay – Click Here

This informative webinar will guide you through the rule changes that impact IRA beneficiaries. You’ll learn:

What changed due to the SECURE Act
EquiTrust products available for Inherited/Stretch IRAs
Application process

Illustration Software to Support Your Sales

Illustrations are an effective means to inform your valued clients. EquiTrust illustrations now offer the ability to distinguish between Eligible (Stretch) and Ineligible (10-years) Designated Beneficiaries. Create an illustration at the Sales Tools tab; login is required.

January Webinars – Live and Replays

Inherited/Stretch IRA:
A Lucrative Market Niche is Back!

Wednesday, January 26th
at 10:00 AM Central

Register Now

Webinar Replays

View a broad range of prerecorded webinar topics at your convenience. Refer to the webinar
replay listing on the Agent Gateway Website – Agents.EquiTrust.com – at the Education tab, or click here.

Questions? Call Sales Support
at 866-598-3694 or visit
the Agent Website at

Agents.EquiTrust.com

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