Sentences with phrase «endowment contract by»
Not exact matches
By the accounting of the Foundation for Newark's Future, the Zuckerberg - funded organization, almost $ 50 million of its total $ 200 million planned endowment is committed to the contract.
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The pro of whole life is that the higher price tag can be mitigated by getting this type of life insurance policy at a young age, adding specific riders that maximize the cash value up to, but not crossing the line, of becoming a modified endowment contract MEC, and allowing you to utilize that cash value in as little as 30 days.
Which is why section 7702 is followed by 26 U.S. Code § 7702A — Modified endowment contract defined.
The criteria for grant applications are strict, and no funds are offered or awarded for animal control programs run by government agencies or under government contract, for individuals, for facility construction, or to support endowment campaigns, research, scholarships, general operating budgets, special events, or films and publications.
Often single premium life is considered a modified endowment contract or MEC by the IRS.
With effect from April 1, 2012, Service Tax Rate has been changed to 3.09 % on first year premium and 1.545 % on subsequent year premium for traditional endowment & annuityA contract sold by a life insurance company that provides fixed or variable payments to a recipient, either immediately or at a future date.
Modified endowment contracts are usually purchased by individuals who are interested in tax - sheltered, investment - rich policies, and do not intend to make pre-death policy withdrawals.
Even if paid by a modified endowment contract, a death benefit can still be passed on to beneficiaries tax free, assuming that the normal requirements for a tax free death benefit under life insurance rules are met.
The maximum amount of money that can be accepted into either a life insurance contract or a modified endowment contract is still limited by guideline premium limits, another limit placed by the federal government to avoid excessive use of this tax benefit.
Which is why section 7702 is followed by 26 U.S. Code § 7702A — Modified endowment contract defined.