Simply put, your client's assets are portable and don't have to remain locked within qualified plans. The Qualified Leverage Strategy follows existing codes and guidelines to strategically reposition qualified retirement plan assets and a portion of personal outside savings into a Roth and a life insurance policy.
A life insurance policy is a unique asset because it can be removed from a qualified retirement plan tax free if it is sold to the plan participant (or a trust) for the policy's fair market value. QLS takes advantage of this little known exception to set in motion a flexible, yet strategic sequencing of assets both inside and outside qualified retirement plans. The QLS custom plan designs can deliver one or more of the following results: greater retirement income, greater charitable endowments, and an increase of wealth transferred to heirs.
The QLS team of diverse industry experts provides custom solutions within a holistic planning approach for high-net worth families, business owners, and their trusted advisors.
The proprietary strategies deliver unique solutions for qualified plan assets. The patent-pending solution has been tested and mastered and now is being shared with advisors like you.
The QLS transforms taxation of assets with benefits that may include reduced taxes, maximized wealth transfer to heirs, increased philanthropy and greater retirement income.
Retirement accounts such as IRAs, 401(k)s, and profit sharing plans are great for contributing pre-tax dollars and tax-deferred growth, but highly taxable at the time of withdrawal.
If your client needs money for retirement, you would typically advise them to: (1) spend it as needed, that's what it's there for, (2) limit withdrawals to the required minimum distribution (RMD) schedule, and (3) consider a Roth IRA conversion.
QLS offers you a: (1) tax efficient method of accessing your money from a qualified retirement plan, (2) a repositioning of taxable assets (outside qualified plans) into a tax-free growth position, and (3) a significant increase in the assets you pass on to family and retirement income.
Qualifications include an individual with at least an equal amount of assets outside the qualified plan. Also, the individual must be eligible for a new profit sharing plan, or to amend their current qualified plan, and the owner and/or spouse must be able to medically qualify for a life insurance policy.