Federal Tax Considerations for Life Insurance and Annuities
Within what period must a distribution be rolled over to another qualified plan or individual retirement arrangement to avoid current tax?
Answer and explanation
Answer: A. A distribution paid to the participant must be contributed to an eligible plan within sixty days to keep its tax deferred character. The thirty, ninety and one hundred and eighty day periods do not correspond to the rollover rule.Source: 26 U.S.C. § 402 — 26 U.S.C. § 402(c)
More federal tax considerations for life insurance and annuities questions
- An owner surrenders a policy whose cash value increases have brought it to forty thousand dollars, having paid thirty thousand in premiums. What is the tax result?
- How are amounts received by a beneficiary by reason of the insured's death generally treated for income tax?
- How are increases in the cash value of a life insurance policy treated while the policy stays in force?
- How are policy loans from a life insurance contract that is not a modified endowment contract generally treated for income tax?
- How does classification as a modified endowment contract change the taxation of cash value increases taken out?
- How is the interest an individual pays on personal policy loans generally treated?
621 New York questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.