National Life Group Gift for Life

Why IRAs. Why now.

Because IRA's can be a powerful tool for long-term financial goals. 

Why IRAs

Retirement Goals

Powerful tool for long-term financial goals.

Why IRAs

Compound Interest

Interest compounds year-over-year, making a significant difference in overall retirement savings.

Why IRAs

Tax Deferred

Depending on the IRA, clients can defer taxes on the money going in now or have tax free withdrawal of the money coming out later if Roth rules are met.

Why IRAs

Lower Adjusted Gross Income

A tax-deductible IRA contribution lowers adjusted gross income (AGI), which is used to calculate certain itemized tax deductions, as well as your client's tax rate.

Why IRAs

Consolidation of Retirement Accounts

Explain the benefits of consolidating their qualified accounts into an IRA to protect their retirement, and of continuing to contribute to their retirement.



Who Do You Know That Fits the Following Profiles?

Payroll Deduction IRA
The Payroll Deduction IRA is probably the simplest retirement arrangement that a business can have. No plan document needs to be adopted under this arrangement.

The basics

  • Employees make all the contributions. There are no employer matching contributions
  • Contributions are made with a payroll deduction each pay period by the employer
  • Employees are always 100 percent vested, the IRA belongs to the employee, not the employer
  • Low administrative costs
  • No filings with the government to establish the program or any annual reports
  • No minimum number of employees required
  • Employees choose to participate and choose how much they want deducted from their paychecks and deposited into the IRA
  • Choice of before tax contributions (Traditional IRA) or post tax contributions (ROTH IRA)
  • Traditional IRA may offer tax advantages on the money contributed and the earnings on the contributions are tax-deferred
  • ROTH IRA contributions are after-tax, and earnings are tax-free

May work well for a client who…

  • Wants to offer employees a retirement plan, without an employer match
  • Needs a low administrative cost plan without government filing or annual reporting requirements
  • Lives in a state that will be mandating auto-enroll IRAs for all private sector employees

Marketing Material and Forms


SIMPLE IRA (Savings Incentive Match Plan for Employees)
For employers with less than 100 employees seeking to make contributions toward their employees' retirement.


The basics
  • Plan is primarily funded by elected pre-tax employee contributions
  • Employers are required to make contributions:
    • Flat 2% for all eligible employees, or
    • Dollar-for-dollar match of up to 3% for contributing employees
  • Policies are owned by the employees; contributions are immediately vested
  • Distributions made to participants under the age of 59.5 within 2 years of their entrance into the plan may be subject to a 25% early distribution penalty

May work well for a client who…
  • Is looking for more tax savings opportunities for their business
  • Does not currently offer any other employer sponsored retirement plan
  • Wants to offer a pre-tax retirement savings plan for employees
  • Wants to attract and retain employees

Marketing Material and Forms

English
What is a SIMPLE IRA? Consumer flyer English Spanish Korean Chinese

SEP-IRA (Simplified Employee Pension)
For small business owners seeking retirement benefits and a business tax deduction.


The basics
  • Plan is solely funded by business owner
  • Contributions are not required every year but must be the same percentage of pay for all employees, including the owner(s)
  • Policies are owned by the employees; contributions are immediately vested
  • Withdrawals are taxed as ordinary income
    • Distribution prior to 59 ½ subject to 10% IRS Early distribution penalty

May work well for a client who…
  • Is self employed
  • Owns a business with few (or no) employees
  • Wants to attract and retain employees
  • Needs a significant tax deduction

Marketing Material and Forms

Traditional IRA: Pre-Tax Contribution
For clients seeking tax-deferral on contributions and a tax deduction.


The basics
  • Contributions may be made regardless of income – deductibility may be limited based on AGI
  • 10% IRS tax penalty applies to withdrawals of both contributions and earnings if made prior to age 59 ½, with certain exceptions
  • Withdrawals are taxed as ordinary income
  • Required Minimum Distributions (RMDs) must start at age 72

May work well for a client who…
  • Needs a tax deduction
  • Wants to save in a tax-deferred vehicle but is okay with paying taxes on withdrawals in retirement
  • Anticipates their income tax bracket at retirement to be lower than their current bracket
  • Has maxed out contribution to their employer-sponsored plan, has income below the deductibility limits, and would like to save more
  • Does not have access to an employer-sponsored retirement plan


Roth IRA: Post-Tax Contribution
For clients seeking tax-free withdrawals in retirement.



The basics
  • Withdrawals are tax free if Roth has been in place for five years and one of the following:
    • Age 59 ½
    • Disability
    • First time home purchase up to $10,000
  • Client may contribute at any age
  • Contributions may be made if income limits are not exceeded
  • There are no Required Minimum Distributions (RMDs)
  • 10% IRS tax penalty applies to withdrawals of earnings only if made prior to age 59 ½, with certain exceptions

May work well for a client who…
  • Wants tax-free withdrawals at retirement
  • Anticipates their income tax bracket at retirement to be higher than their current bracket
  • Has maxed out contribution to their employer-sponsored plan and would like to save more
  • Does not have access to an employer-sponsored retirement plan

Marketing Material and Forms


For clients who want to optimize IRA assets beyond their own retirement to leave a lasting legacy.

Marketing Material and Forms




Types of IRA Rollovers

  • Payment made directly to another retirement plan or to an IRA.
  • The administration may issue the distribution in the form of a check made payable to the client's new account.
  • No taxes will be withheld from the transfer account.
  • Payment directly from the IRA to another IRA or to a retirement plan.
  • No taxes will be withheld from the transfer amount.
  • Distribution is paid directly to the participant.
  • Participant can deposit all or a portion of it in an IRA or retirement plan.
  • Taxes will be withheld from a retirement plan distribution; client will need to use other funds to roll over the full amount of the distribution.


Presentation Kits

In each of the following plug-and-play presentation kits, you will find a ready-to-use presentation, call prompts, social media posts, and registration emails.


Consumer Emails

Emails can be found on the Agent Portal » Marketing » Prospecting Materials.




Social Media Posts

Affiliated Agents: Find these posts in Hearsay Social.

Independent Agents: Follow our Do Good. Be Good. Make Good. social media accounts on LinkedIn, Facebook, Twitter, and Instagram for posts.


Social posts IRA
Social posts IRA
Social posts IRA

Forms and Resources




IRA guidance from the IRS





Questions?
Contact the National Life Group Sales Desk at 800-906-3310, option 1