24 Oct Leaving a Legacy: How a 401(k) to Annuity Conversion Benefits Your Heirs
401(k) to Annuity Conversion Benefits
Planning for your own retirement is essential, but many people also want to leave behind a financial legacy for their heirs. According to a survey by Merrill Lynch, 65% of retirees want to leave an inheritance for their family. By converting your 401(k) to an annuity, you can achieve this goal while also ensuring your own financial stability. (A 401(k) to Annuity Conversion Benefits Your Heirs)
A 401(k) can be left to heirs, but withdrawals are subject to income taxes, which could significantly reduce the amount your beneficiaries receive. In contrast, when you convert your 401(k) into a Roth annuity, your beneficiaries can receive tax-free income. This allows you to pass on more of your wealth without saddling your heirs with a large tax bill.
What’s more, if you choose a lifetime payout option, your heirs can continue to receive income from the annuity after you’re gone. This is a powerful way to ensure that your children or grandchildren are financially secure, even after your passing. For example, if you leave a $200,000 Roth annuity to your heirs, they could receive payments for the rest of their lives without ever paying taxes on that money.
By converting your 401(k) into a RetirementPAYDAY Annuity from The Policy Shop, you not only secure your own retirement but also create a lasting financial legacy for your family.
For more insights on retirement planning and converting your 401K to a RetirementPAYADAY Annuity, check out our other related articles here:
- 401(k) Conversions and Spousal Benefits with the RetirementPAYDAY Annuity – The Policy Shop
- Understanding the Tax Implications of 401(k) to Annuity Conversions: Protecting Your Nest Egg – The Policy Shop
- Converting Your 401(k) into an Annuity: What You Need to Know – The Policy Shop
- Benefits of Converting Your 401(k) to a RetirementPAYDAY Annuity: Maximize Your Retirement – The Policy Shop
- Converting a 401(k) to an Annuity: Q&A – The Policy Shop
________________________________________________________________________________________________________________________________________________
- Secure Your Future with The Policy Shop
Explore our comprehensive life insurance solutions designed to fit your financial goals and protect your loved ones. Whether you’re planning for retirement, safeguarding your family’s future, or exploring innovative insurance strategies, The Policy Shop is your trusted partner in financial security.
Ready to take the next step? Contact our expert advisors to discuss your insurance needs and find the perfect policy.
Subscribe to our newsletter for the latest insights on life insurance, financial planning tips, and exclusive updates from The Policy Shop.