Was Your IRA or 401(k) Rolled Into an IUL?
Retirement Accounts Were Never Meant to Fund Life Insurance—But Agents Keep Pushing This Dangerous Strategy Anyway
If a financial advisor, insurance agent, or so-called retirement strategist told you to roll over your IRA or 401(k) into an Indexed Universal Life (IUL) policy for “tax-free retirement income,” you are not alone, and you are not without legal options.
At RP Legal LLC, we represent retirees, professionals, and business owners across the country who were convinced to liquidate or transfer their qualified retirement accounts into highly complex, fee-heavy IUL policies that failed to deliver on their lofty promises. These policies are aggressively marketed as sophisticated tax strategies, but they are often little more than commission-driven traps with devastating long-term consequences.
What You Were Promised vs. What You Got
Advisors often pitch these rollovers as “tax-free retirement” plans that allow you to bypass IRS limitations, grow your wealth faster, and access your money without penalties. They call it an “IRA rescue,” an “IRA reboot,” or a “tax arbitrage strategy.” They show colorful charts and polished illustrations with guaranteed-looking income starting in just a few years.
What they typically fail to disclose is the harsh reality:
- You triggered immediate tax liability and early withdrawal penalties by cashing out your retirement account.
- You lost the protective tax-deferred wrapper that the IRA or 401(k) provided.
- You were funneled into an expensive, high-risk insurance product with hidden fees, rising costs, and non-guaranteed performance.
- You may now be facing policy collapse, declining cash value, rising premiums, or loss of your life savings.
Why This Strategy Is So Dangerous
An IRA or 401(k) rollover into an IUL is one of the most financially reckless maneuvers a retiree can make. It often results in:
- Massive upfront tax bills from the premature withdrawal of retirement assets
- Loss of qualified retirement protections
- Exposure to hidden cost of insurance (COI), surrender charges, and cap rate manipulation
- Total dependency on aggressive policy loan assumptions that almost never hold up under real-world conditions
Worst of all, the plan is often designed to benefit one party above all others, the advisor.
These transactions can generate tens, even hundreds, of thousands of dollars in commissions for the agent or insurance broker, all funded by your own retirement savings.
How RP Legal LLC Uncovers the Truth
We are not just another law firm dabbling in insurance cases. RP Legal LLC leads the nation in Indexed Universal Life (IUL) litigation, and we have built the largest portfolio of IUL cases in the country, with victories and recoveries involving major insurance carrier and marketing organization.
When it comes to IRA-to-IUL transfers, we know exactly how these deals are structured, who profits from them, and what misrepresentations are commonly made:
- False claims that the transfer is “tax-free” or “IRS-approved”
- Omission of the real tax consequences of IRA liquidation
- Use of misleading illustrations that project unrealistic, non-guaranteed loan income
- Disguised commissions or undisclosed compensation to the advisor
- Improper suitability assessments or none at all
Our litigation team works with forensic accountants, tax professionals, and insurance experts to reconstruct what went wrong, who was responsible, and how much compensation you may be entitled to recover.
You Are Not Alone And You May Be Entitled to Compensation
We are currently litigating IRA-to-IUL cases involving:
- Pacific Life
- Allianz
- Lincoln Financial
- National Life Group
- Minnesota Life
- Midland
- Penn Mutual
- Other Major Carriers
- Multiple independent marketing organizations (IMOs)
If you were sold an Indexed Universal Life policy as a substitute for your IRA or 401(k), you may have a claim for damages related to unsuitable advice, undisclosed risks, and failed performance projections.
Financial and Insurance Firms We Target
Several large insurance firms have been implicated in class action IUL lawsuits. Below is a list of some of the brokerages and firms we might investigate:
Insurance Companies
- Allianz
- Columbus Life
- Family First Life
- Minnesota Life/Securian Financial
- National Life Group
- Pacific Life
- Protective
- Prudential
- Transamerica
Financial Firms
- Ameritas
- Equis Financial
- Equitable AXA
- Five Rings Financial
- Global Atlantic (Accordia)
- Integrity Marketing Group
- John Hancock
- LifePro Financial
- Mutual of Omaha
- North American
- Penn Mutual
- PHP Agency
- Symetra
- Symmetry Financial Group
- World Financial Group
Policy and Rollover Review from the National Leader in IUL Litigation
Before your situation gets worse, let our team evaluate your documents, illustrations, and tax records. We can tell you:
- Whether the transfer was misrepresented
- Whether the policy is in danger of collapsing
- Whether you have legal grounds for rescission or damages
- Whether the advisor or firm acted in bad faith or violated financial industry rules
You only get one retirement. Do not let it be stolen through a deceptive rollover strategy that was designed to enrich others at your expense.
Contact RP Legal LLC today for a confidential review of your IRA-to-IUL transfer. We work on a contingency basis, and we have helped clients recover millions in losses from these failed strategies.
Call (803) 805-7546 or submit your documents online for a policy review.
RP Legal LLC. We lead where others follow.