Overview
IRS Issues Guidance on Safe Harbor for Life Insurance Contracts: Today, the IRS issued Revenue Procedure 2018-20 which provides a safe harbor concerning the application of sections 7702 and 7702A to life insurance contracts that may continue in force beyond the date the insured individual attains age 100 and have mortality guarantees based upon prevailing commissioners’ standard tables that extend beyond age 100. This revenue procedure modifies and supersedes Rev. Proc. 2010-28 to extend the safe harbor to life insurance contracts that have mortality guarantees based upon the 2017 Commissioners’ Standard Ordinary Mortality Tables.