As tax season picks up many clients will be reviewing their finances, which brings opportunities to advisors for new planning and adjustments to existing plans. Here are some things to discuss and ask your clients during tax season:
RMDs: Required Minimum Distributions are withdrawals required from qualified accounts for clients age 72 and older. Beginning in 2023 the age requirement for RMD’s was raised to 73. Many clients do not want/need these distributions and do not know what to do with the money after the taxes are paid. Asking clients about their RMDs and if they have any plans for them is a good way to uncover some additional sales. Redirecting these RMD’s into life insurance policies or Long-Term Care Insurance policies can help strengthen the overall financial plan for clients.
Speaking of LTC Policies, let’s not forget that premiums for traditional LTCI policies can be deductible for certain individuals and business owners.
Company Owned Life Insurance: For companies that own life insurance on the lives of their employees, Form 8925 is required to be filled out every year. Failure to complete this form could result in tax implications. The company CPA should complete this, but it’s a good idea to double check that it is done, especially if the insurance is new and the CPA may not know about it.
Contact the experts at Wholehan Marketing to discuss any of these topics further, how we can help you make the insurance sales in your practice as easy and profitable as possible!