Did you know that your 401(k)-retirement savings plan is named after the IRS tax code “26 U.S. Code § 401”?
This written tax code allows you to save money for retirement, with specific restrictions, tax deferred.
401(k) plans are designed as a savings approach with tax benefits for the future….
BUT WAIT!
You probably have never heard of 26 U.S. Code § 7702 or “Section 7702” for short.
This tax code defines the guts of a “life insurance contract”.
What’s so special about this life insurance Section 7702?
Well…
A properly structured 7702 plan can deliver:
(1) Growth on your money when the market is up
(2) Safety on your money when the market is down
(3) Tax-free savings growth
(4) Flexibility of your funds
(5) Low costs
Section 7702 has redefined the retirement savings approach.
It has given individuals the power of indexing their money to grow with the market while generating a tax-free pot of money.