Question 9006 of 303 · California Life-Only Agent Exam
Distributions from a MEC are taxed on which basis?
Exactly one answer is correct.
You got of questions right. Here on the question pages nobody remembers which ones you got wrong. The trainer saves your progress and asks the mistakes again until they stick.
Or free: the 10 questions most people get wrong
Show solution
Correct answer to question 9006
- D: Last in, first out (gain first)
Explanation
Gain is taxed first and a 10 percent penalty may apply to the taxable amount before age 59 and a half. The death benefit remains income tax free.
More questions: Taxation of Life Insurance and Annuities
- 9007A 1035 exchange allows an owner to
- 9008Annuity payments to an annuitant under a nonqualified annuity are taxed using
- 9009Policy dividends on a participating whole life policy are generally treated as
- 9010Premiums for the first $50,000 of employer-provided group term life insurance are
- 9011Contributions to a qualified retirement plan used to buy life insurance
- 9012Which tax rule applies to a withdrawal from a nonqualified annuity before age 59 and a half?