One common myth about Indexed Universal Life (IUL)?
People wonder if it’s tax-free, or just tax-deferred like an IRA or 401(k).
The truth is, the growth can be totally tax-free, thanks to sections 7702 and 101(a) of the Internal Revenue Code.
These codes outline how money inside an insurance contract can accumulate and be accessed completely tax-free, and even transfer to beneficiaries income-tax-free.
When you follow the TEFRA, DEFRA, and TAMRA tax regulations, your IUL can become a powerful, tax-free cash cow.
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