What are the exact tax rules surrounding modified endowment contracts and how can high income earners avoid triggering MEC status when funding permanent life insurance?
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Fan-out diagram
The searches the AI actually ran for this prompt.
SEED QUERY
What are the exact tax rules surrounding modified endowment contracts and how can high income earners avoid triggering MEC status when funding permanent life insurance?
3 real searches · 1 real-search pass
IRS Internal Revenue Code 7702A modified endowment contract seven-pay test material change distributions loans tax rulesGoogle ↗
OBSERVEDConsequence
IRS Publication 525 modified endowment contracts loans distributions 10 percent additional taxGoogle ↗
OBSERVEDConsequence
26 CFR 1.7702-2 7-pay premium calculation guideline premium material change reduction death benefitGoogle ↗
OBSERVEDReason
Badge and edge weight = share of passes that produced the query. Hover a query for its intent and routing format.
Query classes
Google's semantic query class for every sub-query: what kind of answer each search is after, simulated vs real.
ChatGPT real searches (3)
Classes come from the query-classifier (a local Laya model). 2 of 3 calls are low-confidence (under 50%) — hover a query in the table to see its confidence.
Searches and sources
ChatGPT3 real searches · gpt-6
IRS Internal Revenue Code 7702A modified endowment contract seven-pay test material change distributions loans tax rules Google ↗
IRS Publication 525 modified endowment contracts loans distributions 10 percent additional tax Google ↗
26 CFR 1.7702-2 7-pay premium calculation guideline premium material change reduction death benefit Google ↗
- usc-cdn.house.gov · usc-cdn.house.gov
- 26 U.S.C. § 7702A: Modified endowment contract defined · uscode.house.gov
- U.S.C. Title 26 · govinfo.gov
- U.S.C. Title 26 · govinfo.gov
- 26 U.S.C. § 72: Annuities; certain proceeds of endowment and life insurance contracts · uscode.house.gov
- The Guideline Premium Test · irs.gov
Queries
3 queries · click a column to sort
| Query / type | Search | Intent | Query class | Routing format | Cluster | Freq ↓ | Weight |
|---|---|---|---|---|---|---|---|
IRS Internal Revenue Code 7702A modified endowment contract seven-pay test material change distributions loans tax rules OBSERVED | Google ↗ AI Mode ↗ | — | Consequence | — | — | 1x of 1 | |
IRS Publication 525 modified endowment contracts loans distributions 10 percent additional tax OBSERVED | Google ↗ AI Mode ↗ | — | Consequence | — | — | 1x of 1 | |
26 CFR 1.7702-2 7-pay premium calculation guideline premium material change reduction death benefit OBSERVED | Google ↗ AI Mode ↗ | — | Reason | — | — | 1x of 1 |