Retirees, Buy Life Insurance to Help Your Heirs Pay Bills

Using required IRA distributions to buy life insurance can provide heirs a tax-free windfall, but the strategy isn't for everyone.

Life insurance policy
(Image credit: Getty Images/iStockphoto)

Starting the year you reach age 70 1/2, you are required to take a distribution from your traditional IRA every year. But what if you don't need the money and would like to maximize a payout for your heirs?

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Rachel L. Sheedy
Editor, Kiplinger's Retirement Report