Question about GBU MYGA trail commission option

[Special Agent]

buying a 2 year GBU life MYGA for myself and for tax planning purposes want to keep income down in 2024 so looking at the initial year for high band commish at one time commish of 1.40 vs the 13 month trail option with .70 % initial commission and Trail years 2+ is 0.45%.To be clear if i take the trail option i will get .7 once then .45 twice for a total of 1.80 total commission on initial 100k deposit over the life of the MYGA?

 

[Allen Trent]

buying a 2 year GBU life MYGA for myself and for tax planning purposes want to keep income down in 2024 so looking at the initial year for high band commish at one time commish of 1.40 vs the 13 month trail option with .70 % initial commission and Trail years 2+ is 0.45%.To be clear if i take the trail option i will get .7 once then .45 twice for a total of 1.80 total commission on initial 100k deposit over the life of the MYGA?

If it is only a 2 year MYGA, are you sure you will get .45% in both year 2 & year 3?

Plus, I think .7 + .45 +.45% is 1.60%, not 1.8%

Lastly, you realize income tax rates are currently lower than what they will revert back to (2017 levels) in 2026, correct along with the QBI business deduction going away if congress doesnt take action to extend the 2017 Tax rate changes.

For instance, a married couple today with $240k taxable income would be in the 24% tax bracket, but same $240k would be in the 33% tax bracket when current tax rates sunset ( IE-- you may not want to delay receipt unless you know you are retiring or dropping a ton in income in the next few years)

 

[Special Agent]

oh crap it does equal only 1.6 lol. i turned 63 this year and i am trying to keep my medicare irrmma down for when i start medicare in 2026 and also trying to stay under the income level where increase tax audit rates kick in. .I mostly do medicare and most income is from renewals but have been slowing down so i will let my book dwindle down after one more AEP so that should offset the future higher tax bracket .Thanks for the chart that is very useful-will miss the QBI deduction for sure.