In this presentation I discuss a strategy for protection significant IRA wealth. This strategy and more is available to my clients. Audio will soon be added.

1. Individual Retirement Accounts Wealth Protection Strategies Maintain the Value of Your Account for Your Heirs

4. Do You Have Multiple Sources of Retirement Income? IRAs Investments 401(k) Social Security Pension

5. Do You Have More Income Than You Need?

7. The “Disappearing” IRA *Our example assumes that an IRA is passed to a non-spouse beneficiary and is subjected to state and federal estate taxes totaling 45%. It also assumes that the IRA’s beneficiaries take the remaining IRA in a lump-sum (the option most beneficiaries select) and are subjected to state and federal income taxes totaling 35%. (Post-death taxes on a $500,000 IRA*) Estate Taxes $225,000 Net To Heirs $178,750 Income Taxes $96,250 64% Shrinkage

18. Option One: Keep The IRA $250,000 IRA held until death of second spouse with required mini-mum distributions starting at age 70½ and reinvested in a side fund growing at 6%, after tax. IRA value is then passed to heirs at death. The IRA value consists of the IRA balance at the death of the second spouse, plus the IRA required minimum distributions taxed to the parents at 30% and reinvested at 6%, after tax. Example assumes a 8% annual rate of return on the IRA. Example applies a 45% estate tax on IRA value and side fund. Example also assumes heirs elect to take a lump-sum distribution of the IRA with income taxes of 30%. $210,888 ($73,296) ($0) ($73,296) ($199,898) ($32,616) ($232,514) IRA Balance: $444,217 Side Fund: $72,481 Total: $516,698 Amount To Heirs Income Tax Estate Tax Death of Second Spouse at Age 75 $447,534 ($93,018) ($0) ($93,018) ($253,687) ($188,584) ($442,271) IRA Balance: $563,748 Side Fund: $419,075 Total $982,823 Amount To Heirs Income Tax Estate Tax Death of Second Spouse at Age 85

19. Option Two: Use an IRA Wealth Protection Strategy The $250,000 IRA is distributed with after-tax amounts used to fund a life insurance contract owned by an irrevocable life insurance trust. *Example depicts Ohio National’s Lifetime G, a guaranteed death benefit universal life insurance policy, on a 65-year-old female, preferred nonsmoker with a single premium of $162,500 (assuming an income tax rate of 35% on the $250,000 IRA distribution). Product availability varies by state. $625,000 ($0) ($0) $625,000 Amount To Heirs Income Tax Estate Tax Insurance Benefit to Age 121

20. Comparison: Net To Heirs (At Age 85) A difference of $177,466 Keep The IRA Use an IRA Protection Strategy Net to Heirs $625,000

21. Planning Questions

25. Is This Strategy Limited To IRAs? Non-qualified Annuity Roth IRA Savings & Thrift Plan Tax Sheltered Annuity SIMPLE IRA SEP IRA Profit Sharing Plan 403(b) Plan Money Purchase Plan 401(k) Plan 457 Plan Traditional IRA Virtually all qualified and non-qualified savings may be appropriate