Can You Buy Life Insurance In An Ira?

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    David RacichPRO
    Fountain Hills, Arizona
    An IRA is a qualified Individual Retirement Account. And although other qualified retirement accounts allow life insurance in their plans under a contribution limit, Individual Retirement Accounts do not allow life insurance at all. This includes Roth Individual Retirement Accounts as well. Keep in mind that that life insurance could be an alternative to Individual Retirement Accounts with the exception that there is no tax deduction.
     
    Answered on May 19, 2013
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    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    Can you buy life insurance for an IRA?  No, life insurance is one of a handful of items that cannot be placed inside an IRA. For good reason if you think about it. If you were allowed to place a life policy inside a IRA you would write off the premium, but in doing so, the benefit would become taxable cash values and death benefit. Why would you take two strong tax advantages of life insurance to gain a few dollars tax deduction?
    Answered on May 19, 2013
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