4 Conditions Make the Super Roth Work

Advisors used Super Roth for private placement life insurance, a US wrapper that let investments compound without annual tax and pass outside taxable estates.
Unlike a Roth IRA, this structure had no income test, could absorb much larger premiums, and could hold alternative investments inside the policy.
Tax results hinged on four pieces: qualifying under Section 7702, using loans instead of withdrawals, avoiding modified endowment status, and trust ownership outside the estate.
The structure was generally limited to accredited investors and could help family businesses or farms keep illiquid assets intact by supplying estate liquidity.
Advisors were also watching 2028, when compliance rate changes are expected to lower maximum funding limits, especially for younger insureds and later policy changes.