Summary of H.J.Res.88 - 114th Congress (2015-2016): Disapproving the rule submitted by the Department of Labor relating to the definition of the term Fiduciary. Loc.gov
If my clientâs policy matures prior to the insuredâs death, the policy will typically pay out its cash value. How will this sum be taxed? If the policy matures prior to an insuredâs death, it ceases to be life insurance and is treated as a taxable distribution. As such, the cash value will be taxed as ordinary income to the extent it exceeds the taxpayerâs basis into the policy (i.e., the sum of after-tax premiums) .
If you receive retirement benefits in the form of pension or annuity payments from a qualified employer retirement plan, all or some portion of the amounts you receive may be taxable. This topic does not cover the taxation of Social Security and equivalent railroad retirement benefits. For information about tax on these benefits, refer to Topic 423. The pension or annuity payments that you receive are fully taxable if you have no investment in the contract due to any of the following situations: 1  You did not contribute anything or are not considered to have contributed anything for your pension or annuity.