That is a Statement! Two FREE things the IRS gives you! What are those two things? Let's explore them in more detail. Free things can be very important, especially during your retirement years. Once you have retired, you want to be able to enjoy your retirement years with peace and limited amount of financial drama. There are only two things in the code that provide TAX Free retirement and/or Tax free transfer at death.
The Roth IRA is a vehicle that allows you to withdraw your accumulation for retirement, Tax FREE! The contributions are placed into the account AFTER taxes, but once you are older than 59 1/2 you can withdraw your money tax FREE. There are income restrictions and the money MUST be taken out before you are 70. This is a very cool feature that you can have millions in your Roth IRA, and at retirement never taxed on that money!
I hear you saying, "Wait a second..Life Insurance?" Yes Life insurance! The death benefit proceeds are TAX free to the beneficiary. If you have a beneficiary listed on your policy, the money goes directly without any questions asked by the Tax man. Now you are saying, "Wait a second, I have to die to use it? It makes no sense to give away money to something that I can't use?" That makes sense on the surface, but there are many uses for Life Insurance. It can be an excellent way to store cash for the long haul. It also can be withdrawn tax free. It also can be structured in a similar fashion to a Roth IRA, with the additional feature of having a Tax Free Death Benefit!
It makes sense to talk with your advisor to move from accounts that will tax you at retirement, to accounts that allow tax freedom at retirement! There are some pitfall in making the conversion, so choose a professional that understands how to make that conversion work. It is well worth the conversion to have TAX FREE income at retirement.