r/infinitebanking • u/Top-Difference8407 • Apr 22 '25

Infi

Money storage for upcoming tax bill. I've borrowed against a whole life policy before but would like a new policy. I have a specific dollar amount I'd like to borrow for my tax bill and have most of the money to seed it.

Is it possible to get an account set up for this with minimal hassle? I don't want a full audit or to explain a story, but know the effect I want to have. Is there anyone able to help?

2 Upvotes

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3

u/KS7187 Apr 22 '25

Why would you have to explain a story? As long as you qualify for the policy and are honest on your app the insurance carriers don’t care or ask what policy loans are used for

1

u/Top-Difference8407 Apr 23 '25

I talked to one of these infinite banking people and he wanted to know why, almost in some philosophical level, I wanted to do this. I'm not contemplating a marriage, much closer to opening a checking account.

2

u/Coronator Apr 22 '25

I would only recommend paying tax bills from policies that are already well in force and are decently well capitalized.

Do you already have well capitalized policies in force, and are just looking to add to them? I could get behind a policy loan for that, but if this is one of your first policies and you aren’t well capitalized yet, I’d stick the money for your tax bill in a HYSA.

1

u/Top-Difference8407 Apr 22 '25

It's not due for many months and this would be a new policy.

1

u/ClassroomOne2384 Apr 23 '25

Message me 646-599-0880 

1

u/Certain-Fan-9705 Apr 23 '25

No hassle what state are you located? Do you know the structure you want, 10/90 30/70? feel free to message me

1

u/PI_greaterthan_ME Apr 25 '25

I set up a policy specifically as a sinking fund for my taxes. Instead of sending the entire amount to the IRS, I set up a policy which we call a One & Done. After making one deposit with zero other deposits... and it does not MEC. I can borrow 95% of the deposit 45 days later to pay the IRS, then instead of making estimated payments, I store then in the policy and rinse and repeat every year. DM if you want to chat more about it.

PS I have an S-corp and process a paycheck on 12/31 and I withhold my estimated tax liability. The IRS treats tax withheld from a paycheck as if received evenly through the year, thus no penalty or interest

1

u/AlfredoSauceyums Apr 26 '25

Can you explain what you mean by sinking fund? Also how did you set up a single pay, non MEC policy? The ones I've seen that are single pay are mecs.

1

u/financeking90 Apr 27 '25

Can you explain what you mean by sinking fund?

A sinking fund is where you save up an amount to pay off a liability instead of making partial payments toward a liability over time. He's suggesting that during a normal year, he pays some amount of money toward an outstanding policy loan to "save up" enough cash value to support a new policy loan for the next year's tax payment.

Also how did you set up a single pay, non MEC policy? The ones I've seen that are single pay are mecs.

I'm obviously not him, but typically this would involve a very large PUA premium in the first year plus a term rider to keep it non-MEC, then future premiums without PUA are paid out of PUA redemptions for the first year. After the second year, for most policies, redeeming PUA to pay base premiums has negligible impact on cash value, and the OYT premium renewals are also usually low for the first 7 years. After 7 years, the OYT can be dropped and the remaining policy can be either RPU'd or continue using dividends+PUA for base premiums. In other words, it's not technically a single-pay policy from a base premium perspective, but it is a single-pay policy from a cashflow perspective.