Hi. My husband and I have Transworld Assurance plans from years ago, they are growing at a good rate. I recently talked with one of their agents and they stated in a few years when my Husband turns 65 he will have to withdraw it all. I am concerned that will really put us in a bind due to that would add to our income and increase substantially and put us into a very high tax bracket. What can we do to not let the tax man get so much of our hard earned savings?? Its not an IRA its similar to a annuity.
What kind of TWA plan do you have? Most plans do not require immeidate withdrawal of ALL funds at 65. Typically annuities start paying our the "guaranteed" payments at 65. Depending on your specific contract, the agent might have meant that if you're plan was going to payout $5K a year, then ALL of that must be withdrawn, but I've never heard of an annuity where 100% of funding is pulled at 65. Please let us know what plan you specifically had, so we can answer your question better.
Brandon J (not a Certified Financial Planner)