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IRS 7702 RULE
Section 7702 of the Tax Code differentiates between income from a genuine insurance product and income from an investment vehicle. Certain types of permanent life insurance build up a cash value over time. The proceeds of a true life insurance contract receive favorable tax treatment.
What We Offer
At W.H. Steiner, we provide education on how private financial insurance contracts between owners and carriers can offer tax-advantaged benefits. Understanding how to build wealth and access it tax-free is vital for our clients. By combining compound interest with tax-free outcomes, our clients are set up for success! If you have any questions or would like to see a personalized illustration of your savings potential using IRS Rule 7702, we’re here to help.
What is a (MEC) Modified Endowment Contract?
A modified endowment contract (MEC) is a designation given to cash value life insurance contracts that have exceeded legal tax limits. When the IRS relabels your life insurance policy as an MEC, it removes the tax benefits of withdrawals you can make from the policy.
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