Tax Free Disbursements From Your 401K | 348

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Tax Hacker Tuesday is back to show you how to get tax free disbursements from your 401K!

It’d be great to get assets out of your retirement plan in a tax free manner, right? The solution is actually simple – but most of us have been programmed not to like it.

Tim Berry shows you how, along with exactly what qualification you should meet to benefit from this strategy. Reap the benefits of tax free disbursements from your 401K with Epic Real Estate and Tim Berry on Tax Hacker Tuesday!

tax free disbursements

What You Will Learn About Tax Free Disbursements From Your 401K:

  • How to pass on money from your 401K to your children in a tax free manner
  • The best way to pass on money outside of your 401K (even if you can’t afford life insurance)
  • Who SHOULD and SHOULDN’T use these methods

Recommended Resources:

  • It’s been great meeting you virtually. Would you like to meet in person? Our next live event is right around the corner! Go to EpicIntensive.com for the details.
  • Need money? We have secured more than $15,000,000 of funding for the Epic community, people just like you. Get access to fast cash for your real estate investing business with our “one-of-a-kind” credit-based funding program at EpicFastFunding.com
  • Need time? Work on your business rather than in your business by leveraging the time of others.  Access free information and find real estate-trained virtual assistants to help you free up your time.  Learn more at VAsForRealEstate.com.
  • Need training? The ultimate training environment for real estate investors: Version 3.0 of The Epic Pro Academy!  New look, new lessons & new content – we’ve got everything you need to know to get your first paycheck!
  • Need someone to do it all for you? If you’re an Accredited Investor, you can diversify your portfolio by hitching your wagon to our train and share in the profits. Go to EpicWealthFund.com to download the executive summary.

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Tax Free Disbursements

Transcript:

Matt: Hey. Matt here. And Tim, he’s on vacation and has been for a couple weeks, but he’ll be back next week.

In the meantime, I’ve been pulling from his archives of genius tax strategy advice. I stumbled upon this one I wanna share with you today that I almost didn’t even share with you because of my initial reaction to it. But I stuck it out until the end. It’s just a few minutes long. I left thinking, wow, that’s actually pretty darn smart, and it’ll be quite the gift to my family should anything ever happen to me.

If you’ve got three minutes, hang in there. You’ll be able to impress your friends at the next golf or tennis outing or the next happy hour – whatever it may be. And if you haven’t received a copy of Tim’s short book, How to Take Advantage of 5 Loopholes in Trump’s New Tax Plan the Mainstream Media isn’t Sharing with You, and Could Cost You a Small (or Large) Fortune, go to taxhacker.com. And if the timing is right for you, schedule a tax strategy session right then and there. You can do it right after receive your book. There’ll be a page there you can schedule yourself in for a time that’s convenient for you.

If Tim can’t save you at least three times what he charges for his services, you pay nothing at all. That’s right – you’ve got nothing to lose. So go to taxhacker.com. Grab a copy of his book. If it makes sense, self-schedule yourself in for a strategy session with Tim. Guaranteed to save you three times his fees, or you pay nothing at all. Go to taxhacker.com. Enjoy the show.

Speaker 1: This is Theriault Media.

Did you know that up to 50% of your lifetime income will be wiped out by taxes? What if you could stop this madness? Isn’t it about time you play on a level playing field with the wealthiest 1%?

Now, you can. Tim Berry, attorney-at-law, shares here each and every week current tactics and strategies that anyone can implement to hack the tax code. Protect your assets and keep what’s rightfully yours. It’s time for Tax Hacker Tuesday.

Tim Berry: Tax-free money. Wouldn’t it be great if there was a way that you could get assets out of your retirement plan, especially your traditional retirement plan, in a tax-free manner? Well, there’s a simple solution, but it’s a solution that most of us are just programmed not to like.

What is that solution? Life insurance. The tax code explicitly says if you pass away while your retirement plan is holding a life insurance policy, now whenever that money is paid out to your beneficiaries, whenever that death benefit is paid out to your beneficiaries, they receive all of that money completely and totally tax free.

Now, don’t get me wrong – it’s a high price to pay. You die and for them to get that money tax-free, but whenever I stop and think about all the other ways that you can gain access to money tax-free from the retirement plan, there aren’t too many of them. You can do the Roth conversion, but that gets very expensive and pricey at times.

So if you’re looking to do some estate planning and you don’t need all the money inside of your retirement plan right now during your lifetime, you don’t think you’re gonna need it all, you might wanna consider putting a portion of your retirement plan assets into a life insurance policy owned by the retirement plan and paid for by the retirement plan. And now, whenever you die, those assets are gonna go to your heirs and your beneficiaries in a completely tax-free manner.

By the way, if you know you need life insurance and yet you can’t afford it out of your current cash flow, and yet you have a lot of money sitting inside your retirement plan, this is another great idea. Use those retirement plan assets to pay for the life insurance. And once again, whenever you pass away, the death benefit’s gonna flow out of the retirement plan down to your beneficiaries, and they don’t have to pay any income taxes on it.

Now if you’re Richie Rich, and you’ve got a lot of money, this may not be the best idea because it might cause an estate tax problem. So long as your assets are below $5 million or $10 million if you’re married, this is probably a fantastic solution for you.

Speaker 1: That’s it for today, as we dream of a tax system that works just for you. But until then, you have Tim Berry. See you next Tuesday for another episode of Tax Hacker Tuesday.