Sentences with phrase «gain in the policy»

The amount of gain in the policy (the current cash value minus the dollars you contributed along the way) would be taxed at ordinary income tax rates.

The end result: the policyowner never actually uses the life insurance loan directly, and finishes with a life insurance policy with a net cash surrender value of $ 0, and still gets a Form 1099 - R for the underlying gain in the policy.

Note: This policy could be considered a Modified Endowment Contract at certain issue ages, and as such, any distributions (e.g., loans, dividends paid in cash or accumulated, or a policy assignment) will be subject to current income tax to the extent there is taxable gain in the policy.

If the policy is a MEC, all distributions (withdrawals or loans) are taxed as ordinary income to the extent of gain in the policy, and may also be subject to an additional 10 % premature distribution penalty prior to age 59 1/2, unless certain exceptions are applicable.

Note: * This policy is considered a Modified Endowment Contract and as such any distributions (e.g., loans, dividends paid in cash or accumulated, or a policy assignment) will be subject to current income tax to the extent there is taxable gain in the policy.

If your spouse does not wish to continue the contract, the Accumulation Value is paid to your spouse and the gain in the policy is reported to the IRS.

You will not be taxed on any gains in your policy until you withdraw the gains or surrender the policy.

In certain cases, during the first 15 years of a policy a partial withdrawal may be taxable to the extent there is gain in the policy.

MEC policyholders may be subject to taxes on distributions on an income - first basis, that is, to the extent there is gain in their policies, and penalties on any taxable amount if they are not 59 1/2 or older.

MEC policyholders may be subject to taxes on distributions on an income - first basis, that is, to the extent there is gain in the policy and penalties on any taxable amount if they are not 59 1/2 or older.

If a VUL policy is a MEC, then partial withdrawals and loans are taxable to the extent of the gain in the policy, and if the policy owner is under age 59 1/2, may also be subject to a 10 % tax penalty.

If certain limits are exceeded, a MEC results and MEC policyholders may be subject to taxes on distributions on an income - first basis, that is, to the extent there is gain in the policy and penalties on any taxable amount if they are not 59 1/2 or older.

That means you are not taxed on the gains in your policy, allowing your cash value to increase year in and year out in true compound growth fashion.

MEC policyholders may be subject to taxes on distributions to the extent there is gain in their policy and penalties on any taxable amount if they are not 59 1/2 or older.

All withdrawals from an annuity purchased with non-qualified monies are taxable as ordinary income only to the extent there is a gain in the policy.

Distributions, including loans, from a MEC are taxable to the extent of the gain in the policy and may also be subject to 10 % additional tax if the owner is under age 59 1/2.

If your policy is considered a Modified Endowment Contract (MEC), any loan you take will be taxable as ordinary income to the extent of the gain in the policy.

If your policy is considered a MEC then life insurance loans are taxable as ordinary income on any gains in the policy.

If your spouse does not wish to continue the contract, the Accumulation Value is paid to your spouse and the gain in the policy is reported to the IRS.

Distributions, including loans, from a MEC are taxable to the extent of the gain in the policy and may also be subject to 10 % additional tax if the owner is under age 59 1/2.

A policy termination during the life of the insured can cause the owner a single taxable event for any gains in the policy that were borrowed or withdrawn on or before the termination date.

When you do, and you receive the cash value of the policy, you must pay tax on all of the gains in the policy.

With fixed interest policies, you normally should see a gain in your policy, even though it might take many years.

Regardless of whether you make withdrawals or policy loans, if you terminate the policy, any gains in the policy are taxed as income.

Any amount of money received that exceeds the total amount of money paid into the policy is considered a gain in the policy and subject to ordinary income tax.

This payment amount is fully taxable to the extent that there are gains in the policy.

MEC policyholders may be subject to taxes on distributions to the extent there is gain in their policy and penalties on any taxable amount if they are not 59 1/2 or older.

If certain limits are exceeded, a MEC results and MEC policyholders may be subject to taxes on distributions on an income - first basis, that is, to the extent there is gain in the policy and penalties on any taxable amount if they are not 59 1/2 or older.

Beware, as mentioned above, if you take dividend payments they may be taxable if your policy is considered a modified endowment contract to the extent that there is a gain in the policy.

In certain cases, during the first 15 years of a policy a partial withdrawal may be taxable to the extent there is gain in the policy.

If the policy is a MEC, all distributions (withdrawals or loans) are taxed as ordinary income to the extent of gain in the policy, and may also be subject to an additional 10 % premature distribution penalty prior to age 59 1/2, unless certain exceptions are applicable.

You will not be taxed on any gains in your policy until you withdraw the gains or surrender the policy.

MEC policyholders may be subject to taxes on distributions on an income - first basis, that is, to the extent there is gain in their policies, and penalties on any taxable amount if they are not 59 1/2 or older.

MEC policyholders may be subject to taxes on distributions on an income - first basis, that is, to the extent there is gain in the policy and penalties on any taxable amount if they are not 59 1/2 or older.

Any gain in the policy is taxed at ordinary income tax rates.

I life insurance loan is typically tax free (unless it was set up as a Modified Endowment Contract - this is a tax term, but important to know if it is a MEC), but if there is a gain in the policy and if the loan causes the policy to lapse in the future, the gain may be realized on your tax return as ordinary income.

Disadvantage No. 2: Lifetime distributions or withdrawals of cash values are subject to income tax to the extent attributable to gain in the policy.

Lifetime distributions of cash values are subject to income tax to the extent attributable to gain in the policy.