IRS Warning About EIUL?

[RyanCO]

On another forum and in a thread discussing EIUL, a poster said the following:

"When I got my tax return last year, the IRS included a little pamphlet warning about indexed universal life policies."

Is anyone here familiar with such a pamphlet?

 

[DHK]

I know the forum you're referring to... and I'm still trying to find such a publication by the IRS.

My only rational thought, is that if agents are promoting IUL as a Roth IRA, that they emphasize that premiums for IUL are not tax-deductible.

But with all the resources available, along with producersweb, lifehealthpro, insurancenewsnet, and others... you would think that someone IN our industry would write an article about it to let the rest of us know.

A closed-minded, biased, wirehouse advisor is not a source of credibility in my mind regarding anything having to do with life insurance.

 

[RyanCO]

True, anyone can claim pretty much anything on the internet.

I sniffed around the IRS site and didn't see anything.

 

[VolAgent]

I'd tell them to post it or shut up.

If there is no form number, it is bogus. And guess what happens if the IRS says there is no such form?

 

[moonlightandmargaritas]

On another forum and in a thread discussing EIUL, a poster said the following:

"When I got my tax return last year, the IRS included a little pamphlet warning about indexed universal life policies."

Is anyone here familiar with such a pamphlet?

100% pure unadulterated bs. NOT part of the IRS "function".

 

[DHK]

He posted links regarding Fixed indexed annuities... and it wasn't from the IRS, but from the SEC and FINRA.

https://www.sec.gov/investor/alerts/secindexedannuities.pdf

http://www.finra.org/web/groups/investors/@inv/@protect/@ia/documents/investors/p125847.pdf

Nothing new there.

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This was what he wrote:

"I don't think it was the IRS that wrote the memo, but it was definitely included in my tax return. My memory was a bit off though - it was talking about equity indexed annuities, not equity indexed whole life. So i'll put my foot in my mouth, but only slightly... the similarities are definitely there, and I'd argue that EIULs are worse than EIAs."

Which basically tells me that he doesn't know anything about EIAs (Since he's still calling them "EIAs") or IUL.

I'm not about to educate him on the vast differences though.

 

[RyanCO]