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For Producer Use Only
SALES WEEK: A Flexible, Turnkey Traditional-to-Roth Conversion Approach
CONVERTING FROM TRADITIONAL TO ROTH IRA
EquiTrust makes it easy
If you’re like many agents, your clients may be asking you about Roth IRAs, and potentially converting over from another vehicle.
Good news — we make it easy. Partial Tax Conversion (PTC) is available on any Qualified, inforce EquiTrust deferred annuity. With a PTC, your clients with an EquiTrust Traditional, SEP or SIMPLE IRA can transfer money over time into a Roth IRA contract.
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What are the advantages of systematically transferring money over time to a Roth IRA?
Your client has more control over when they pay taxes — they can pay lesser taxes on the partial conversion amounts vs. paying income taxes when using the money for retirement income.
Your client determines when and how much to convert (one PTC allowed per contract year).
Paying taxes now on partial conversion amounts while your client may be in a lower tax bracket may offer tax advantages.
What’s so great about a Roth IRA?
Potential for tax-free growth
Tax-free distributions after age 59½1
No Required Minimum Distributions (RMDs)
Nontaxable income for beneficiaries
Plus! We’ll do the tax withholding at the time of conversion, generating the 1099R for your client, including any withholding they request.
How does the conversion of the original contract work?
The new contract mirrors the original contract, except for the tax qualification, with the same:
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.
EquiTrust does not offer investment advice to any individual or agent/producer and this material should not be construed as investment advice. 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. EquiTrust.com.
