16+ Section 7702 Background. The benefits of a life insurance retirement plan, under internal revenue code section 7702, are many Internal revenue service (irs) tax code defines what the federal government considers to be a legitimate life insurance contract and is used to determine how the.
Section 7702 of the tax code differentiates between income from a genuine insurance product and income from an. Contract to qualify as a life insurance contract for federal income tax purposes, the. What does section 7702 mean?
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 account value.
Section7702 is ranked 9,711,990 in the united states. A 7702 private pension, also known as a 702(j) plan, is simply a rebranding of a life insurance contract, the name comes from the fact that section 7702 of the irs code regulates life insurance contracts. Section 7702 of the tax code differentiates between income from a genuine insurance product and income from an. The proceeds of a true life insurance contract receive favorable tax treatment.