The Year-End Relief Bill Revives A Retirement Income Planning Idea

With all the drama of the year-end relief bill, many missed the fact that it is
part of a large budget law containing a number of tax changes. The Taxpayer
Certainty and Disaster Tax Relief Act of 2020 (TCDTRA) is a component of
the consolidated appropriations law, and it includes some long-awaited
modifications and clarifications. One modification buried deep in the law
essentially revives a retirement planning concept popular with some
taxpayers. The core idea is that cash value life insurance can be used not
only to provide an income tax-free death benefit at the insured’s death, but
it can also potentially be a source of tax-favored retirement income. (read more)