John Olsen

I might be missing something, but if dad died after his RBD and was recalculating his life expectancy, that life expectancy drops to zero in the year following his death, but if the Trust qualified as a Designated Beneficiary Trust, then dad was entitled to use the JOINT life expectancy of himself plus the beneficiary with the shortest life expectancy, modified by the MDIB rule (making the daughter 10 years younger than dad for RMD purposes). It appears to me (again, I might be missing something) that the remaining distribution period is now the oldest daughter's life expectancy, per table V (NOT modified by MDIB) in the year of Dad's first required distribution, less the number of years elapsed since. The entire IRA would, indeed, be required to be distributed by 12/31 of the year following Dad's death IF THE TRUST DID NOT QUALIFY AS A DESIGNATED BENEFICIARY TRUST (e.g.: all beneficiaries were not identifiable, not individuals, etc.) If I'm wrong (which is ALWAYS possible), I shall appreciate correction. ------------------ John L. Olsen, CLU, ChFC Olsen Financial Group St. Louis, MO

As was noted by other repliers, you cannot "convert" that VUL to a Roth IRA. First, because surrender of the policy will trigger tax on any gain, and, second, because the VUL is not IRA money and cannot be converted to a Roth OR contributed to a Roth, beyond the $2K/yr annual contribution limit (for ALL IRA accounts combined). However, I question why you say that the term cost is becoming more expensive than a term policy would be. If the VUL is on the "Option B" basis (where the total death benefit is the SUM of the original face amount PLUS the cash value of the policy), you're paying COI (cost of insurance) on that entire original face amount each month, at a rate which, for MOST vul policies, is roughly equivalent to a decent term policy rate. If the policy is on an "Option A" basis (where the total death benefit is only the original face amount), you're paying Cost of Insurance only on the DIFFERENCE between that death benefit and the cash value. That should produce a cost of insurance that is LESS than a term policy with a LEVEL death benefit (at least, after the VUL has been in force for a while). Have you relayed your concerns to the agent who sold that policy? I'd suggest that this is a place to start. ------------------ John L. Olsen, CLU, ChFC Olsen Financial Group St. Louis, MO