Use IRA funds to buy insurance by transferring the funds to a businesss qualified retirement plan.

Specific Details

Example: After 20 years as an employee at a big company, Jim quit to start his own business and roll over his balance in the companys 401(k) retirement account to his own IRA. He wants to purchase a million-dollar life insurance policy to protect his family, but the qualified retirement plan that he has set up for the new business lacks the money to buy the insurance. Jim can provide it with the funds by rolling over his IRA into the new companys plan if permitted by the plan, and having the plan use that money to buy the insurance.