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NEWSWIRE: Partial Tax Conversion Now Available on EquiTrust Qualified Contracts

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HELP ALLEVIATE YOUR CLIENTS’ TAX BURDEN IN RETIREMENT

Do you have clients with:
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IRAs they’re looking to convert to Roth?
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Ineligible beneficiaries with Inherited IRA money they’ll have to pay taxes on in 10 years?
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EquiTrust can help you — and your clients!

For both scenarios, we now offer a flexible, systematic Partial Tax Conversion (PTC) program that can help ensure your clients won’t need to start over with surrender charges or have several contracts to keep track of. With a PTC, they can convert their fully taxable, Qualified EquiTrust contract to a Roth IRA or Non-Qualified contract.

How does it work?

With a PTC through EquiTrust, your clients can:

  • Systematically transfer money over time from their original EquiTrust Traditional, SEP or SIMPLE IRA into a Roth IRA contract, or from Inherited IRA into a Non-Qualified contract

     

  • Pay taxes on the partial amount that converts

     

  • Have more control over when they pay taxes and potentially avoid higher taxes down the road

We make it easy!
We'll do the tax withholding at the time of conversion, generating the Form 1099R for your client -– including any withholding they request.

Available on all inforce EquiTrust deferred annuity contracts.

Mirroring the original contract

The new Roth or Non-Qualified contract mirrors the original contract, with the same:

  • Effective date
  • Client roles
  • Agent
  • Account allocations
  • Credited rates
  • Riders
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The partially transferred money moves from the original contract to the mirrored one. Think of it like one tank emptying as it fills another. When the value of the original contract is depleted, the original contract will be closed.

Questions? We have answers. 
Partial Tax Conversion FAQ Flyer
Download FAQ
Partial Tax Conversion Flyer
Download PTC Form
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Products underwritten and issued by EquiTrust Life Insurance Company, West Des Moines, Iowa. Products distributed by EquiTrust Insurance Marketing Services; in California doing business as EQT Insurance Marketing Services. For Producer Use Only. EquiTrust.com.
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EquiTrust

7100 Westown Pkwy Suite 200
West Des Moines, IA 50266

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