Tuesday, June 21, 2016

Form 1099-R From Insurance Company Can Be Bad Tax News

Life insurance is actually a rather sweet tax deal.  That is why I find it so distressing when someone manages to use life insurance to manufacture phantom income for themselves that produces a tax liability that is quite real. Such is the sad story of Kenneth Mallory who received bad news from the Tax Court earlier this month.  My view is that that problems like this are a the result of agents selling policies as if they are the Swiss utility knives of financial planning rather than ways of providing for people dependent on you after you are, you know, dead.

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