You may have clients fortunate enough to not need their RMDs (required minimum distributions) for income. They may not like the idea of being forced to withdraw money they don’t need to spend and having to pay taxes on it. Maybe they would prefer to pass that money along as a legacy. If your client or their spouse is insurable, consider using the RMD to purchase life insurance. The advantages include:

• A tax-free source of wealth to transfer
• The cash value of the policy will grow tax-deferred
• Leverages the RMD into a larger transferable benefit

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