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Tax Treatment of Life Insurance Proceeds

  • CPA (US)
  • EA
  • AFSP
  • CFP® (US)
  • Maryland Tax Preparer
  • ORTP
  • CWS
  • CFIRS
  • Accountant/Bookkeeper/Tax Professionals

Free (Only Today)

2.5 Credits

Subject Area

Taxes
  • Course Description
  • Course Qualification
  • Presenter
  • FAQ

Course Description

Course Description

One of the important considerations in many financial transactions is the tax treatment the transaction is given. Often, the impact of taxation is a consideration in the purchase of life insurance every bit as much as it applies to stock purchases, bond purchases and the establishment of qualified retirement plans

In this course we will look at the tax treatment given proceeds from life insurance policies and will consider the taxation of death benefits, cash value withdrawals, loans and surrenders. In addition, we will examine the differences in tax treatment caused by a life insurance policy’s:

  • Failure to meet the statutory definition of life insurance
  • Being deemed a modified endowment contract
  • Transfer of ownership to another person for a valuable consideration
  • Sale in a viatical or life settlement transaction
  • Ownership by an employer
  • Use in a qualified retirement plan.

Learning Objectives

  • To calculate the gain to be recognized as a result of various life insurance policy transactions, including –  withdrawals, Loans, surrenders, and payment of death benefits.
  • To identify the changes to the customary tax treatment of life insurance policy living proceeds resulting from the policy being deemed a modified endowment contract (MEC)
  • To calculate the reportable gain upon receipt of life insurance policy death benefits when the life insurance policy – has been transferred for a valuable consideration, or was included in a qualified plan
  • To recognize the types of life insurance exchanges that are tax-free under IRC §1035
  • To define the terms “terminally-ill” and “chronically-ill” as used in the Health Insurance Portability and Accountability Act
  • To identify the income tax treatment of accelerated death benefits, viatical settlements and life settlements.

Course Qualification

Webinar Qualifies For

  • 2 CPE Credit of Taxes for Certified Public Accountants (CPA-US)
  • 2.5 General Credit for Accountant/Bookkeeper/Tax Professionals
  • 2 CE Credit of Taxes for Enrolled Agents (EA) (Approval No. GEHNZ-T-00690-21-S)
  • 2 CE Credit of Taxes for Annual Filing Season Program (AFSP)
  • 2.5 CE Credit of Risk Management and Insurance Planning for Certified Financial Planner (CFP-US) (Approval No. 299031)
  • 2.5 CE Credit of Federal Tax Related Matters for Oregon Registered Tax Preparers (ORTP) (Approval No. GEHNZ-T-00690-21-S)
  • 2.5 CE Credit of Federal Tax Related Matters for Maryland Tax Preparer (MRTP) (Approval No. GEHNZ-T-00690-21-S)
  • 2 CE Credit for Certified Wealth Strategist (CWS)
  • 2 CE Credit for Certified Fiduciary and Investment Risk Specialist (CFIRS)

Additional details

  • Course Level :
    Basic
  • Credits :
    2.5
  • Pre-requisites :
    None
  • Advance Preparation :
    None

IRS APPROVED

MY-CPE LLC, 1600 Highway 6 south, suite 250, sugar land, TX, 77478

MY-CPE LLC (Sponsor Id#: GEHNZ) has entered into an agreement with the Internal Revenue Service, to meet the requirements of 31 Code of Federal Regulations, section 10.6(g), covering maintenance of attendance records, retention of program outlines, qualifications of instructors, and length of class hours. This agreement does not constitute an endorsement by the IRS as to the quality of the program or its contribution to the professional competence of the enrolled individual. Credit earned by attendees with a PTIN will be reported directly to the IRS as required of all providers. To ensure your CPE hours are reported, update your profile in My Account to include your PTIN number. Please note: IRS CE is only mandatory for EAs and ERPAs. For all other tax return preparers, CE is voluntary.

NASBA APPROVED

MY-CPE LLC, 1600 Highway 6 south, suite 250, sugar land, TX, 77478

MY-CPE LLC (Sponsor Id#: 143597) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org.

Presenter

About Presenter

Paul Winn, CLU, ChFC

Financial Writer, Editor & Trainer, Winn Publications

Paul J. Winn, CLU, ChFC has over thirty years experience in the life insurance and investment industry. As well as fifteen years as a financial writer, editor, and trainer. Paul has worked for Mutual Life Insurance Company of New York, Security Mutual Life Insurance Company, Principal Financial Group, and the Maryland Financial Corporation. Paul is a Published book author, writer & editor of major mutual life insurance company’s agent-training “university”, and the creator of more than 100 training courses in computer-based training, print and scripted classroom formats.

About Company

Welcome to my website. I am a writer of training and continuing education courses dealing principally with life insurance, health insurance, annuities and taxation.

I offer my courses and writing services in two ways, enabling clients to take advantage of distinct approaches in developing their continuing education and training libraries. These approaches involve a) licensing existing non-exclusive courses, and b) purchasing original courses written exclusively for their own use.

Faq

FAQs content

  • To receive Continuing Education credit for the event, you must register for the webcast prior to the start of each program.
  • Continuing Education Credit Certificate is available to all eligible participants within 24 hours of each webinar.
  • You must attend complete live webinar and respond to all polling questions asked during the webinar. Credits would be issued on 50 minute credit hour basis.
  • Polling feature Not supported: If you are logging in through browser or web portal in the browser (zoom.us) it doesn’t support the polling feature. Please be advised the current polling feature can only be supported via Zoom desktop and mobile app. You can check the same here : https://support.zoom.us/hc/en-us/articles/203749865-Polling-for-webinars
  • This event may be a recorded rebroadcast of a live event done in past and the instructor will be available to answer your questions during/after the webinar.
  • If you still face the polling problem please don’t panic and provide your response in the chat and we shall consider the same for processing for credits. You can download Zoom by clicking on the mentioned link : https://zoom.us/download
  • Our courses meet the global Continuing Professional Development (CPD-IES7) Standard for Chartered Accountants with International Education Standard 7 (IES 7) set by The International Federation of Accountants (IFAC), the International Accounting Education Standards Board (IAESB) and the Association of Chartered Certified Accountants (ACCA). Based on our accreditation by existing IFAC members and affiliates, we believe learners can count their professionally relevant, verifiable learning activities on myCPE, including taking on demand courses and attending live webinars, toward fulfillment of their verifiable CPD-IES7 requirements. However, if there is any question, we recommend that the individual learner confirm with his/her professional licensing organization before taking myCPE courses for CPD-IES7 credit.
  • You can manage your continuing education certificates and credits through your certificate dashboard which is available when you are logged in to your account (LOGIN)
  • As an accredited provider of Continuing Professional Education in the United States, myCPE online learning platform, courses, and webinars meet the requirements set forth by the Institute of Management Accountants (IMA), an IFAC Member Organization, as well as the National State Boards of Accountancy (NASBA) and the Institute of Internal Auditors (IIA), both IFAC Affiliates. As well as it has been approved by NASBA, Internal Revenue Service (IRS), Certified Financial Planner Board (CFP Board), California Tax Education Council (CTEC), Society of Human Resource Professional (SHRM), Human Resource Certification Institute (HRCI) and many more.Therefore, we believe learners can count their professionally relevant, verifiable learning activities on myCPE, including taking on demand courses and attending live webinars, toward fulfillment of their verifiable continuing education requirement as CPD-IES7 requirements. However, if there is any question, we recommend that the individual learner confirm with his/her professional licensing organization before taking myCPE courses for CPD-IES7 credit.
  • myCPE Courses are taken by : CPA | CMA | CFE | CIA | CPA(Yellow Book)| CFP | CFA | CPA (Govt.) | EA | CRTP | MRTP | ORTP | ABV | CITP | CVA | PFS | CFF and others.
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Free (Only Today)

2.5 Credits

Subject Area

Taxes