Definition
TAMRA
The Technical and Miscellaneous Revenue Act of 1988, which enacted §7702A and the seven-pay MEC test.
Full definition
The Technical and Miscellaneous Revenue Act of 1988 (TAMRA) added §7702A, the MEC rules. A life insurance contract that receives premium above the seven-pay benchmark becomes a Modified Endowment Contract with less favorable lifetime distribution taxation.
Related terms
Modified Endowment Contract (MEC)
A life insurance contract that fails the §7702A seven-pay test, losing tax-free access to cash value during life.
IRC §7702A
The Modified Endowment Contract rules — the seven-pay test that governs whether a policy is a MEC.
DEFRA
The Deficit Reduction Act of 1984, which enacted §7702 and defined life insurance for federal tax purposes.
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