This IUL vs. 401(k) comparison shows quite a difference between these two products. Here we compare Safety of Principle, Tax Consequences, Access to Your Money, Restrictions and Fees.
NEW
Tax-Free IUL Savings Vehicle
Safety of Principle:
- Your money is NOT invested in the Stock Market.
- Your Money is NOT subject to volatility.
- Your Money is NOT exposed or subject to investment risk.
- Your Money is NOT subject to investment loss.
- All annual growth is LOCKED-IN permanently and account CANNOT ever depreciate in value.
Tax Consequences:
- Your money grows Tax Free.
- There are NOT Taxes when you retire and withdraw your money.
- There are NOT Taxes when you die.
- There are NOT Taxes when you pass your money to your family.
Access to Your Money:
- You can access your money whenever you need it.
- There are NO early withdrawal penalties.
- You don’t have to pay it back.
Restrictions:
- There is NO limit on how much you can contribute to your plan on an annual basis (up to max MEC limit)
- There is NO age restriction fro withdrawal.
Fees:
- Charges are a fraction of the expenses and administration cost of a traditional qualified plan.
401K – IRA – Pension
Safety of Principle:
- Your Money IS invested in the Stock Market.
- Your Money IS subject to volatility.
- Your Money IS exposed and IS subject to investment risk.
- Your Money IS subject to investment loss.
- Growth is NOT locked-in and account CAN DEPRECIATE in value.
Tax Consequences:
- Your money grows Tax Deferred.
- You PAY Taxes when you retire and withdraw your money.
- You PAY Taxes when you die.
- You PAY Taxes when you pass your money to your family.
Access to Your Money:
- You have limited access to your money
- You PAY early withdrawal penalties.
- You have to PAY it back.
Restrictions:
- There IS a limit on how much you can contribute to your plan on an annual basis.
- There IS an age restriction for withdrawal.
Fees:
- Charge significant fees and expenses and the administration of your account even if the account depreciates in value.
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