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It is my understanding that qualified money cannot be 1035 exchanged into an Annuity/LTC combo product or a Life/LTC combo product.
Only non-qualified money can be used for these products.
Am I mistaken?
sao
Well first 1035 is a term used only with Non-Qualified money. Qualified money would be transfered or rolled over.
good point.
I will re-phrase the question:
It is my understanding that qualified money cannot be deposited into an Annuity/LTC combo product or a Life/LTC combo product.
Only non-qualified money can be used for these products.
Am I mistaken?
good point.
I will re-phrase the question:
It is my understanding that qualified money cannot be deposited into an Annuity/LTC combo product or a Life/LTC combo product.
Only non-qualified money can be used for these products.
Am I mistaken?
Herman,
This is not a carrier call........
The ability to allow the use of non-Qualified funds and not Qualified funds for the purchase of a combination policy is the IRS' call, not an insurance company's.
Now, with that being said, I'd guess if someone cashed in their IRA, paid taxes and used the remaining money (which is now non-Qualified) and figure out a way to purchase a hydrid product and somehow re-coup the tax payment, maybe that possibility exists. And, I'd guess that's what One America is offering.
Keep in mind that if funds are qualified, taxes haven't been paid and somewhere down the road the IRS wants and will get their share.
You said: "They use, as I recall, a 20-pay whole life plan to make it work with non-qualified funds.
I think we agree that non-qualified funds are ok for a 1035 exchange, it's qualified funds that NADM was asking about.
I only said to call One America to ask them how they do it. I am not an expert on their products. The have Asset Care II, which is a single premium product funded with existing non-qualified annuities, and Asset Care III which is a single premium product funded with qualified money. The ACIII product provides "the ability to use IRAs and other qualified funds, providing flexible RMD Management, wealth transfer, and long term care protection" (I just copied it from their flyer)
Now, will there be any annual taxable withdrawals? Dunno, but people are buying this product.
By the way, my statements are "Not for Public Distribution...these are for Company and Recruitment purposes only".