Rolling My 401k or IRA into Life Insurance

This is a common question I get with clients. Can I roll my 401k into an insurance policy? The answer is simple. No… you cannot rollover your 401k, IRA, 403b, or any other qualified account into an insurance policy.

That being said, the only real way to get money into a life insurance policy from an IRA, 401k, or other qualified plan is to withdraw it. An early 401k withdrawal often makes sense, and you probably have more options than you think.

If a dividend paying whole life insurance policy seems like a good solution for a my clients, I recommend redirecting some of those savings dollars currently going into government sponsored plans to a high cash value policy. You can check out our resource page for info on how to do this.

There is no real rule here. Since rolling a 401k or IRA into a life insurance is not possible, there are potentially penalties involved, and every situation is unique.

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Jake

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