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Phillip B, EA
Phillip B, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 704
Experience:  Practicing since 2004. Expert in 1040, small business, represent vs. IRS, & int'l tax mattters.
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are the proceeds of a modified endowment contract taxable to

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are the proceeds of a modified endowment contract taxable to the named beneficiaries at the insureds death?
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Generally, the proceeds at death of a Modified Endowment Contract are not taxable to the beneficiaries after the death of the insured.

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Customer: replied 4 years ago.
what would cause them to be taxable?
Only certain distributions or loans from a MEC are taxable during the life of the insured. After the insured dies, the beneficiaries of the MEC receive the death benefit tax free as with most life insurance proceeds.
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