FlexVault for Retirement
Tax-Free Income When You Need It Most
Retirement should be about freedom—not worrying about tax brackets, RMDs, or market crashes. FlexVault creates predictable tax-free income you control.
Tax-Free Access Under Section 7702
How FlexVault Improves Retirement Income
FlexVault provides tax-FREE retirement income through policy loans under Section 7702. Unlike 401Ks where withdrawals are taxed at your future rate, FlexVault income is completely tax-free. There are no Required Minimum Distributions forcing you to take money when the IRS says. No 10% penalty if you need access before 59½. And no exposure to future tax rate increases—which are virtually certain given $39T in national debt.
Income Tax Rate
0% tax on FlexVault retirement income—forever.
No RMDs
Take income when YOU want, not when the IRS demands.
No Penalties
Access funds before 59½ without the 10% early withdrawal penalty.
Why Your 401K Might Not Be Enough
The Retirement Income Problem
You've been told your whole career: "Max out your 401K and you'll retire wealthy." But there's a critical problem with this advice.
The Tax Time Bomb
Every dollar in your 401K will be taxed when you withdraw it—at whatever tax rates exist in the future. With $39+ trillion in national debt and $169 trillion in unfunded liabilities, do you think tax rates are going up or down?
Forced Distributions
Starting at age 73, the IRS forces you to take Required Minimum Distributions (RMDs) whether you need the money or not:
- Are fully taxable income
- Can push you into higher tax brackets
- May trigger Social Security taxation
- Can cause Medicare premium surcharges (IRMAA)
Side-by-Side Comparison
FlexVault vs. Traditional Retirement Accounts
| Feature | 401K/IRA | FlexVault |
|---|---|---|
| Tax on Contributions | Pre-tax (deferred) | After-tax |
| Tax on Growth | Deferred until withdrawal | Tax-deferred |
| Tax on Withdrawals | Fully taxable | Tax-FREE |
| RMDs at 73 | Required | None |
| Early Access | 10% penalty before 59½ | No penalty |
| Future Tax Rate Risk | Full exposure | Zero |
The Power of Tax-Free
Retirement Income Projection
| Feature | $100K/yr to 401K | $100K/yr to FlexVault |
|---|---|---|
| After 20 years | $3.7M (assumed 7%) | $3.2M (target 12%+) |
| Annual Income (4%) | $148,000 gross | $130,000 gross |
| Tax (25% avg) | ($37,000) | $0 |
| Net Income | $111,000/year | $130,000/year |
| Tax Rate Risk | Full exposure | Zero |
Projections are illustrative. 401K assumes 7% average return, 25% combined tax rate at withdrawal. FlexVault targets 12%+ through four-component system. Individual results vary.
The Tax-Free Advantage Compounds
Notice that even with slightly lower gross income, the FlexVault strategy delivers higher net income because you keep 100%. And as tax rates rise (which they almost certainly will), the advantage grows.
Income Security for Life
FlexVault Retirement Features
Predictable Income
Know exactly how much tax-free income you can take each year. Strategic guidance projects sustainable distribution levels for your specific policy.
Inflation Protection
Unlike fixed pensions, FlexVault cash value continues growing even as you take income. Your purchasing power can keep pace with inflation.
Market Protection
The 0% floor protects your cash value from market crashes. You won't see your retirement savings drop 30% in a bad year like 401K investors did in 2008.
Legacy Preservation
Unused FlexVault value passes tax-free to heirs via the death benefit. Your family benefits whether you use all your retirement income or not.
FlexVault + Traditional Accounts
Integrating with Your Existing Plan
Step 1: Capture the Employer Match
If your employer matches 401K contributions, that's free money. Contribute enough to get the full match. This is usually 3-6% of salary.
Step 2: Diversify Your Tax Exposure
Beyond the match, consider directing additional retirement savings to FlexVault instead of more 401K contributions:
- Tax-deferred bucket: Your 401K (taxable when withdrawn)
- Tax-free bucket: Your FlexVault (never taxable)
Step 3: Optimize Retirement Income
In retirement, coordinate withdrawals from both sources to minimize taxes:
- Keep you in lower tax brackets
- Avoid Social Security taxation triggers
- Prevent Medicare IRMAA surcharges
- Maximize total after-tax retirement income
Who Benefits Most from FlexVault Retirement Strategy?
High Earners
If you're in the 32-37% tax bracket now, you have the most to lose from taxable retirement income. FlexVault locks in 0% tax rate on future income.
Maxed-Out Savers
Already maxing your 401K and IRA? FlexVault has no contribution limits—continue building tax-advantaged retirement savings beyond IRS caps.
Future Tax Concerned
Worried about rising tax rates? FlexVault eliminates tax rate risk entirely. Whatever future rates are, your FlexVault income is tax-free.
Control Seekers
Hate the idea of RMDs dictating your finances? FlexVault gives you complete control over when and how much income to take.
Frequently Asked Questions
Ready to Plan Your Tax-Free Retirement?
In a complimentary FlexVault Strategy Session, we'll analyze your current retirement trajectory and show you how FlexVault could improve your after-tax retirement income.