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All of the following statements regarding a MEC are correct EXCEPT: a. A life insurance policy that fails the 7 pay test is deemed a
All of the following statements regarding a MEC are correct EXCEPT:
a. A life insurance policy that fails the 7 pay test is deemed a MEC.
b. Withdrawals from a MEC are subject to FIFO tax treatment.
c. A 10% penalty applies to withdrawals prior to age 59.
d. The primary issue on a MEC is the taxation of withdrawals because the death benefit is generally tax free.
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