federal tax considerations for life insurance and annuities
what is the name for an over funded life insurance policy
a modified endowment contract (MEC)
according to the taxation rules of life insurance policies, how are cash value increases taxed
cash value growth is tax deferred
why are dividends in life insurance policies not taxable
dividends are not considered income for tax purposes; they are a return of unused premium
in a direct rollover, how is the money transferred from one retirement plan to a new one
from trustee to trustee
is the death benefit of a life insurance policy taxed to the beneficiary if its received as a lump
no, lump-sum benefits are received tax free
upon surrender of a life insurance policy, what portion of the cash value will be taxed
only the portion in excess of the premium paid
what is the main purpose of the 7-pay test
to determine if a life insurance policy is a modified endowment contract
when would life insurance policy proceeds be included in the insureds taxable estate
when there is an incident of ownership at the time of death
what is the general taxation rule for death benefits payable to the beneficiary of a life insurance policy
death benefits are generally not subject to income taxes
what portion of a non qualified annuity payment would be taxed
interest earned on principal
if the beneficiary of the life insurance policy receives death benefit payments that consist of principal and interest, which portion, if any will be taxed
interest only
