President Joe Biden has proposed increasing the highest marginal long-term capital gains tax rate from 20.0% to 39.6%. For those earning $1 million or more annually, the new top rate, along with the net investment income tax, means that federal capital gains tax rates for wealthy investors could exceed 40%. With the proposed increase in capital gains rates, asset location becomes even more critical, and earners subject to the highest rates have likely maximized many of the tax-advantaged account options available. However, for certain qualified investors, there may be an alternative in the form of Private Placement Life Insurance and annuity contracts.
The information discussed in this podcast does not represent individualized investment advice, professional legal or tax advice, and should not be used to project or predict the success or suitability of any particular investment. Actual results will vary depending upon an individual's age, health rating, premium amount, death benefit amount, insurance policy, interest rate, performance, and other variables. Past performance is not indicative of future results.
PPLI and PPVA are exclusively available to Accredited Investors (net worth exceeding $1,000,000 or an annual income of over $200,000 for the last 2 years) and Qualified Purchasers (individuals with a minimum of $5,000,000 of investable assets). Private Placement Life Insurance is an unregistered securities product and is not subject to the same regulatory requirements as registered variable products. As such, Private Placement Life Insurance (or Annuities) should only be presented to accredited investors or qualified purchasers as described by the Securities Act of 1933.