chapter 7 w/a

PO cancels life policy but transfers cash to an annuity

1035 Exchange

true of 1035 exchanges

IRS Code which permits like kind exchanges of property, typically used when exchanging a less competitive policy for a more competitive one, requires absolute assignment

federal tax advantages of a qualified plan

employer contributions made to a qualified plan are tax deductible as ordinary business expense, funds accumulate on a tax-deferred basis, contributions made to a qualified plan are not counted as income by employee for income tax purposes

COLI (corporate owned life insurance) covers who

all employes

accumulation period of nonqualified annuity, what are the tax consequences for withdrawal

taxable interest will be withdrawn first and the 10% penalty will be imposed if under 59 1/2

who can make a fully deductible contribution to a traditional IRA

an individual not covered by an employer sponsored plan who has earned income

what concept is associated with exclusion ratio

annuities payments

true about policy loans

can be repaid on death, insurer can charge interest on outstanding policy loans, a policy loan can be repaid after the policy is surrendered

what is the main purpose of the seven-pay test

determines if the insurance policy is an MEC

name for nontaxed return of unused premiums

dividend

in life insurance policies, cash value increases

grow tax deferred

what is the tax consequence of amounts received from a traditional IRA after the money was left in a tax deferred account by beneficiary

income tax on distributions and no penalty

what is true about whole life

lump-sum benefits are not taxable

for an individual who is not covered by a employer sponsored plan, IRA contributions are

tax deductible

randy transfers his life insurance to his son and then dies two years later, what happens

the entire face value of the policy will be included in randy's taxable estate