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Simple Value-Added Opportunity-Offer Tax Advantages

Roth IRA conversions are available on all inforce EquiTrust deferred annuity contracts

Have you had conversations with clients about Roth IRAs and converting money over from a traditional vehicle? 

Good news — EquiTrust makes it easy. Partial Tax Conversion (PTC) is available on any Qualified, inforce EquiTrust deferred annuity. With PTC, your clients with an EquiTrust Traditional, SEP or SIMPLE IRA can transfer money over time into a Roth IRA contract.

What are the advantages of a Roth IRA conversion?

- Spread taxes out over a period of time rather than having to pay them all at once

- Choose when and how much to convert (one PTC allowed per contract year)

- Potential tax savings for clients whose tax bracket will likely be higher in retirement

- Potential for tax-free growth in Roth contract

- Tax-free distributions after age 59½¹

^-- No Required Minimum Distributions (RMDs)

- Nontaxable income for beneficiaries²

A mirrored contract simplifies the process

EquiTrust's systematic process generates a new contract that mirrors the original contract, except for the tax qualification, with the same:

• Effective date

• Client roles

• Agent

• Account allocations

• Credited rates

• Riders

¹ The Owner is required to wait five years and until age 59½ before distributions are tax-free. Distributions are reportable, but not taxable, assuming all IRS rules have been met.

²  Withdrawals of earnings may be subject to income tax if the Roth account is fewer than five years old at the time of the withdrawal.