Annual contribution limits
401(k)s and IRAs have IRS-set annual contribution limits. Once you’ve maxed them out, a large share of your savings capacity is left without a tax-advantaged home.
For high earners · Based in Roseville, CA
Build supplemental retirement income beyond the contribution limits.
Maxing out your 401(k) and IRA is a great start. For many high earners, it isn’t enough. A properly structured indexed universal life (IUL) policy is life insurance with cash value that can complement your retirement accounts—with tax-deferred growth, a 0% floor on index credits, and potentially tax-free income through properly structured policy loans and withdrawals.
Designed for singles earning $150k+ and married couples earning $250k+. 2-minute questionnaire · No obligation · Available in every state except New York.
- Fiduciary investment adviser representative
- Independent — shops multiple carriers
- AdvisorHub 2024 100 Solo Advisors to Watch†
Hypothetical illustration
How index crediting works
Index change
Interest credited to policy
The high-earner gap
You’re doing the right things. The tax code still caps how far they go.
Traditional retirement accounts are powerful tools, and they belong in most plans. But when your income is high, you can run into their limits quickly—especially in high-tax states.
Income phase-outs
At higher incomes, eligibility to contribute directly to a Roth IRA phases out—limiting one of the best-known sources of tax-free retirement income.
Taxes on growth & withdrawals
Taxable brokerage accounts can generate tax on dividends and gains along the way, and pre-tax account withdrawals are taxed as income in retirement—plus state income tax in many states.
A complement, not a replacement
Add a tax-advantaged layer designed around you.
A cash-value-focused IUL is permanent life insurance first. When it’s properly designed and funded, its cash value can grow tax-deferred and may later be accessed to supplement retirement income—alongside, not instead of, your 401(k), IRA and investment accounts. And your family has a death benefit the entire time.
- Keep maxing your workplace plan and IRAs
- Add a separate, flexible source of potential retirement cash flow
- Diversify how your future income is taxed
- Protect your family with a death benefit
How it works
Three steps, built around your plan.
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01
Design & fund the policy
We compare carriers and design a policy structured to emphasize cash value—within federal tax limits intended to keep it from becoming a modified endowment contract (MEC). You fund it with premiums over a period that fits your cash flow.
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02
Cash value earns index-linked credits
Your cash value can earn interest credits based partly on the performance of a market index, subject to caps and participation rates, with a 0% floor on credits in down years. Your money is not invested directly in the market, and policy charges continue to be deducted.
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03
Access income in retirement
Later, you may draw on the cash value through policy loans and withdrawals—potentially income-tax-free when the policy is properly structured and maintained—while keeping a death benefit in place for your beneficiaries.
Key features
Why high earners look at IUL.
Every feature below depends on policy design, funding, and carrier terms. We’ll walk through the trade-offs honestly—including costs—before you decide anything.
No IRS annual contribution limits like 401(k)s & IRAs
Premiums aren’t capped by retirement-plan contribution limits. Instead, how much you can put in is based on the policy’s death benefit and federal tax rules for life insurance.
Tax-deferred growth
Interest credited to your cash value isn’t taxed each year while it remains in the policy.
0% floor on index credits
When the index is negative for a crediting period, your credit is floored at 0%—so market declines don’t produce negative credits. Fees and charges can still reduce cash value.
Potentially tax-free access
Income may be accessed through properly structured policy loans and withdrawals that are generally not subject to income tax, as long as the policy stays in force and isn’t a MEC.
No age 59½ penalty rules
Loans and withdrawals from a non-MEC policy aren’t subject to the 10% early-distribution penalty that applies to many qualified retirement accounts.
Death benefit protection
Your beneficiaries receive a death benefit that is generally income-tax-free, reduced by any outstanding loans and withdrawals.
Already own IUL or whole life?
Get a free policy review. See if your policy still fits.
Many policies were designed years ago around different interest rates, caps, costs and goals. If you own an IUL or whole life policy with no outstanding loans, we’ll review it with you—at no cost and with no obligation.
Sometimes the answer is to keep it exactly as it is. Sometimes small funding or design adjustments help. And in some cases, a 1035 exchange—which can move your policy’s cash value into a new policy without triggering current income tax on the gain—may be worth evaluating.
What we look at
- Current in-force illustration and projected values
- Internal costs, charges and any surrender schedule
- Crediting method, caps and participation rates (IUL) or dividend history (whole life)
- Death benefit vs. your current family and legacy goals
- Whether the policy is on track for the income you expect
Replacing a policy isn’t always in your interest.
A replacement or 1035 exchange may involve new surrender charges, a new contestability and suicide period, new underwriting, and new costs. Your current policy may have features that can’t be replaced. We’ll compare both side by side, and any recommendation will follow your state’s replacement rules and required disclosures.
AdvisorHub
2024 100 Solo Advisors to Watch†
Why work with Ryan
Independent advice from a fiduciary who looks at the whole picture.
Ryan Breedwell, RFC®, is a financial advisor with Capitol Planning Group in Roseville who has spent more than a decade helping people prepare for and live through retirement—from families building their first real nest egg to high-net-worth clients refining income, tax and legacy strategies.
His process is deliberately holistic. Rather than treating any product as a standalone solution, Ryan works across the full picture: retirement and income planning, Social Security, taxes, insurance, and the practical decisions that determine whether a plan holds up in real life. He’s backed by Foundations Investment Advisors, giving clients access to a deep bench of investment, planning and practice-support specialists—so every recommendation sits inside a coordinated process, not a one-off transaction.
Capitol Planning Group is a family-owned, father-and-son team: Ryan works alongside his father, Richard Breedwell, who has helped Californians navigate retirement for more than 35 years.
- FiduciaryInvestment adviser representative (IAR) with Foundations Investment Advisors, LLC (FI Wealth)
- Securities-licensedCan coordinate your policy with your broader investment and retirement plan
- IndependentNot tied to one company—can shop carriers and products available in your state
- RecognizedRanked #87 on AdvisorHub’s 2024 100 Solo Advisors to Watch list†
CA Insurance License #0K65821 · Ryan’s CRD #7038486 · Firm CRD #175083 · Verify on adviserinfo.sec.gov
FAQ
Straight answers to common questions.
Is an IUL an investment or a retirement plan?
No. An IUL is permanent life insurance with a cash value component. It is not a security, is not a qualified retirement plan, and does not directly participate in the stock market. Its cash value can be used to supplement retirement income, which is why some high earners use it alongside their 401(k), IRA and investment accounts.
Who is this typically a good fit for?
Generally, people with a need for life insurance who have strong, stable cash flow, are already contributing to their workplace plans, and can commit to funding a policy for a number of years—often single earners making $150,000+ or married couples making $250,000+. Health and underwriting also matter. It is not the right fit for everyone, and we’ll tell you if it isn’t for you.
Can my cash value go down?
Yes. The 0% floor means negative index performance won’t result in a negative interest credit, but the policy’s cost of insurance, fees and other charges are deducted regardless of performance. In years with low or zero credits, cash value can decrease. Caps, participation rates and charges can also change within contract limits. Nothing about an IUL guarantees investment-like returns.
How can policy income be potentially tax-free? What are the risks?
Withdrawals up to your cost basis and policy loans are generally not taxed as income, as long as the policy is not a modified endowment contract (MEC) and remains in force. The risk: loans accrue interest, and loans and withdrawals reduce cash value and the death benefit. If a policy lapses or is surrendered with a loan outstanding, it can trigger a significant tax bill. That’s why ongoing monitoring matters. Please consult a tax professional about your situation.
What is a 1035 exchange, and should I replace my policy?
Section 1035 of the Internal Revenue Code allows you to exchange one life insurance policy for another without recognizing current income tax on the gain. That doesn’t mean replacing is a good idea. New surrender charges, a new contestability period, new underwriting and costs can outweigh the benefits. Our free review is designed to find out whether your current policy still fits—and often the answer is to keep it.
What does the review or consultation cost?
The initial consultation and policy review are free, with no obligation. If you choose to purchase a life insurance policy, Ryan may receive commissions from the insurance carrier as a licensed insurance agent. Insurance is offered separately from investment advisory services. We’ll be transparent about how compensation works.
See whether a properly structured IUL belongs in your plan.
Answer a few quick questions. If it looks like a fit, you’ll be able to book a no-cost, no-obligation conversation with Ryan.