Can A Person Use Their Funds Of An IRA, KEOGH, Or Other Defined Contribution Plan For Viaticals Of A Life Insurance Policy Investment?
It is recommended that an individual seek the advice of a Certified Public Accountant before making any decisions regarding investing their retirement or pension funds.
There are numerous viatical investment settlement companies who advertise to consumers to invest their IRA and other tax deferred retirement funds into viaticals. They are not required to give tax advice on these investments.
The 401k, IRA, and other tax sheltered accounts usually do not allow investments in life insurance policies. Some of the KEOGH accounts may allow viatical investments and defer the tax on the return of the investment. The different types of retirement and pension accounts vary from state to state and have different tax laws that govern them. This is why investors should check with their accountants before making any purchase of a viatical.