<div id="namespaces" prefix="schema:http://schema.org/ tae:http://taxnotes.com/model/entities/ tar:http://ixxus.com/link-resolver/rid/ "> <section id="26s2g-0000010"> Amendment: <meta content="7702(b)(2)(A),7702(b)(2),7702(b),7702" name="affectedCodeSections" property="tae:affectedCodeSections"/> Act section 205(a)(1) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, Division EE of the Consolidated Appropriations Act, 2021 (P. L. 116-260<meta content="116-260" name="publicLawNumber" property="tae:publicLawNumber"/>) amended Code section 7702(b)(2)(A) by striking "an annual effective rate of 4 percent" and inserting "the applicable accumulation test minimum rate". Effective for contracts issued after December 31, 2020. </section> <section id="26s2g-0000011"> Amendment: <meta content="7702(b)(3),7702(b),7702" name="affectedCodeSections" property="tae:affectedCodeSections"/> Act section 205(a)(2) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, Division EE of the Consolidated Appropriations Act, 2021 (P. L. 116-260<meta content="116-260" name="publicLawNumber" property="tae:publicLawNumber"/>) added Code section 7702(b)(3). Effective for contracts issued after December 31, 2020. </section> <section id="26s2g-0000012"> Amendment: <meta content="7702(c)(3)(B)(iii),7702(c)(3)(B),7702(c)(3),7702(c),7702" name="affectedCodeSections" property="tae:affectedCodeSections"/> Act section 205(b)(1) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, Division EE of the Consolidated Appropriations Act, 2021 (P. L. 116-260<meta content="116-260" name="publicLawNumber" property="tae:publicLawNumber"/>) amended Code section 7702(c)(3)(B)(iii) by striking "an annual effective rate of 6 percent" and inserting "the applicable guideline premium minimum rate". Effective for contracts issued after December 31, 2020. </section> <section id="26s2g-0000013"> Amendment: <meta content="7702(c)(3)(E),7702(c)(3),7702(c),7702" name="affectedCodeSections" property="tae:affectedCodeSections"/> Act section 205(b)(2) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, Division EE of the Consolidated Appropriations Act, 2021 (P. L. 116-260<meta content="116-260" name="publicLawNumber" property="tae:publicLawNumber"/>) added Code section 7702(c)(3)(E). Effective for contracts issued after December 31, 2020. </section> <section id="26s2g-0000014"> Amendment: <meta content="7702(c)(4),7702(c),7702" name="affectedCodeSections" property="tae:affectedCodeSections"/> Act section 205(c)(1)-(2) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, Division EE of the Consolidated Appropriations Act, 2021 (P. L. 116-260<meta content="116-260" name="publicLawNumber" property="tae:publicLawNumber"/>) amended Code section 7702(c)(4) by striking "4 percent" and inserting "the applicable accumulation test minimum rate", and by striking "6 percent" and inserting "the applicable guideline premium minimum rate". Effective for contracts issued after December 31, 2020. </section> <section id="26s2g-0000015"> Amendment: <meta content="7702(f)(11),7702(f),7702" name="affectedCodeSections" property="tae:affectedCodeSections"/> Act section 205(d) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, Division EE of the Consolidated Appropriations Act, 2021 (P. L. 116-260<meta content="116-260" name="publicLawNumber" property="tae:publicLawNumber"/>) added Code section 7702(f)(11). Effective for contracts issued after December 31, 2020. </section> <section id="26s2g-0000001"> Amendment:<meta content="7702(c)(3)(B)(i),7702(c)(3)(B),7702(c)(3),7702(c)" name="affectedCodeSections" property="tae:affectedCodeSections"/> Act section 13517(a)(4)(A) of Pub. L. 115-97<meta content="115-97" name="publicLawNumber" property="tae:publicLawNumber"/> amended Code section 7702(c)(3)(B)(i), which read as follows: (i) reasonable mortality charges which meet the requirements (if any) prescribed in regulations and which (except as provided in regulations) do not exceed the mortality charges specified in the prevailing commissioners' standard tables (as defined in section 807(d)(5)) as of the time the contract is issued, Effective, generally, for tax years beginning after December 31, 2017. However, for the first taxable year beginning after December 31, 2017, the reserve with respect to any contract (as determined under section 807(d) of the Internal Revenue Code of 1986) at the end of the preceding taxable year shall be determined as if the amendments made by this section had applied to such reserve in such preceding taxable year. </section> <section id="26s2g-0000002"> Amendment:<meta content="7702(f)(10),7702(f),7702" name="affectedCodeSections" property="tae:affectedCodeSections"/> Act section 13517(a)(4)(B) of Pub. L. 115-97<meta content="115-97" name="publicLawNumber" property="tae:publicLawNumber"/> added Code section 7702(f)(10). Effective, generally, for tax years beginning after December 31, 2017. However, for the first taxable year beginning after December 31, 2017, the reserve with respect to any contract (as determined under section 807(d) of the Internal Revenue Code of 1986) at the end of the preceding taxable year shall be determined as if the amendments made by this section had applied to such reserve in such preceding taxable year. </section> <section id="26s2g-0000007"> Special Note: Transition Relief<meta content="7702" name="affectedCodeSections" property="tae:affectedCodeSections"/><meta content="section 7702 pl115-97 special note" name="publicLawGroups" property="tae:publicLawGroups"/> Act section 13517(c)(3) of Pub. L. 115-97<meta content="115-97" name="publicLawNumber" property="tae:publicLawNumber"/> provides as follows: (3) Transition relief. -- (A) In general. -- If -- (i) the reserve determined under section 807(d) of the Internal Revenue Code of 1986 (determined after application of paragraph (2)) with respect to any contract as of the close of the year preceding the first taxable year beginning after December 31, 2017, differs from (ii) the reserve which would have been determined with respect to such contract as of the close of such taxable year under such section determined without regard to paragraph (2), then the difference between the amount of the reserve described in clause (i) and the amount of the reserve described in clause (ii) shall be taken into account under the method provided in subparagraph (B). (B) Method. -- The method provided in this subparagraph is as follows: (i) If the amount determined under subparagraph (A)(i) exceeds the amount determined under subparagraph (A)(ii), 1/8 of such excess shall be taken into account, for each of the 8 succeeding taxable years, as a deduction under section 805(a)(2) or 832(c)(4) of such Code, as applicable. (ii) If the amount determined under subparagraph (A)(ii) exceeds the amount determined under subparagraph (A)(i), 1/8 of such excess shall be included in gross income, for each of the 8 succeeding taxable years, under section 803(a)(2) or 832(b)(1)(C) of such Code, as applicable. </section> </div>

Section 7702 Legislative History - P.L. 116-260