Do you have a MEC? Modified Endowment Contracts

Modified Endowment Contracts

When using life insurance policies with investment or cash value features to build wealth, keep in mind these IRS rules to avoid major tax pains.

What is a MEC?
http://www.irs.gov/irb/2006-46_IRB/ar12.html
http://www.irs.gov/irb/2005-25_IRB/ar10.html
http://www.irs.gov/irb/2006-45_IRB/ar11.html

How much money can I put-in/take-out of my life insurance policy?http://www.massmutual.com/mmfg/pdf/mec_client_guide.pdf

What if I resturcture the cash flows (Life Insurance Settlement)?http://www.lisettlements.com/articles/Corsi-article.doc

Common Questions about MECs
http://www.equitable.com/customer_service/faqs_life.cfm?topic=208

Need more assistance? Contact Tax Pros today.
P: 718-875-0556 or go to Tax Pros Online.



insurance, MEC, modified endowment contracts, tax issues