ROTH contibutions with AGI above limit via Whole Life Insurance.

[Guest PennyBags]

Is it possible to contribute to a ROTH via a Whole life insurance policy if my AGI is above the limit?

[BPickerCPA]

NO!

[Guest ezollars]

I suspect that this may be some confusion caused by a sales pitch pushing a cash value insurance policy as the "equivalent" (and I use that term *very* loosely) of a Roth IRA. If that is what this individuals has been told, he/she needs to realize that any setup that is claimed to work like a Roth will carry with it a number of tax risks that aren't present in the real thing.

My suspicion is that what we have is a plan to fund up the cash value policy with post tax dollars and then eventually borrow out the cash value (including borrowing to pay the interest). If the plan stays in place, the loans are wiped out when the individual dies.

Of course, the big problem is that "if the plan stays in place" line--if it doesn't (which may happen for a number of reasons), the result will be far from a "tax free" result.

I've run into one case where an individual was being told to pursue a plan like I outlined *instead* of a Roth, so it wouldn't surprise me to see it similarly suggested to those ineligible for a Roth.

P.S. I did suggest that the Roth looked a lot better than the policy being pushed :-) .