Section 7702 Of The Internal Revenue Code

7702b e 2 denial of deduction under section 213 no deduction shall be allowed under section 213 a for any payment made for coverage under a qualified long term care insurance contract if such payment is made as a charge against the cash surrender value of a life insurance contract or the cash value of an annuity contract.

Section 7702 of the internal revenue code. Internal revenue code created the 7702 plan regarding how the tax code is applied to the accrual of cash in a life insurance policy referred to as the cash value or. Prescribed by internal revenue code 7702 in order to qualify for favorable tax treatment in the united states. 7702 a 1 meets the cash value accumulation test of subsection b or.

Code unannotated title 26. Life insurance retirement plan lirp under internal revenue code section 7702. Treatment of qualified long term care insurance.

Internal revenue code 7702. Section 7702 is a portion of the internal revenue code that describes certain conditions that life policies should satisfy in order to qualify as life insurance contract that has tax advantages. 2 the cvat has only one requirement.

One is the cash value accumulation test cvat. Will you have enough retirement income. Such contract meets the requirements of subsection g.

Section 7702 of the u s. Section 7702 of the u s. Life insurance contract defined on westlaw findlaw codes are provided courtesy of thomson reuters westlaw the industry leading online legal research system.

In order to better understand this section certain terms should be identified first. A qualified long term care insurance contract shall be treated as a guaranteed renewable contract subject to the rules of section 816 e. The other is the guideline premium and corridor test gpt.