Retention of existing rules in certain cases
(A) In general In any case to which this paragraph applies— (i) paragraphs (2)(B) and (4)(A) shall not apply, and (ii) if paragraph (2)(A) does not apply, the amount shall be included in gross income, but only to the extent it exceeds the investment in the contract.
(B) Existing contracts This paragraph shall apply to contracts entered into before August 14, 1982 . Any amount allocable to investment in the contract after August 13, 1982 , shall be treated as from a contract entered into after such date.
(C) Certain life insurance and endowment contracts Except as provided in paragraph (10) and except to the extent prescribed by the Secretary by regulations, this paragraph shall apply to any amount not received as an annuity which is received under a life insurance or endowment contract.
(D) Contracts under qualified plans Except as provided in paragraph (8), this paragraph shall apply to any amount received— (i) from a trust described in section 401(a) which is exempt from tax under section 501(a), (ii) from a contract— (I) purchased by a trust described in clause (i), (II) purchased as part of a plan described in section 403(a), (III) described in section 403(b), or (IV) provided for employees of a life insurance company under a plan described in section 818(a)(3), or (iii) from an individual retirement account or an individual retirement annuity. Any dividend described in section 404(k) which is received by a participant or beneficiary shall, for purposes of this subparagraph, be treated as paid under a separate contract to which clause (ii)(I) applies.
(E) Full refunds, surrenders, redemptions, and maturities This paragraph shall apply to— (i) any amount received, whether in a single sum or otherwise, under a contract in full discharge of the obligation under the contract which is in the nature of a refund of the consideration paid for the contract, and (ii) any amount received under a contract on its complete surrender, redemption, or maturity. In the case of any amount to which the preceding sentence applies, the rule of paragraph (2)(A) shall not apply.
(A)In general#
In any case to which this paragraph applies—
(i) paragraphs (2)(B) and (4)(A) shall not apply, and
(ii) if paragraph (2)(A) does not apply,
the amount shall be included in gross income, but only to the extent it exceeds the investment in the contract.
(A)(i)#
paragraphs (2)(B) and (4)(A) shall not apply, and
(A)(ii)#
if paragraph (2)(A) does not apply,
(B)Existing contracts#
This paragraph shall apply to contracts entered into before August 14, 1982 . Any amount allocable to investment in the contract after August 13, 1982 , shall be treated as from a contract entered into after such date.
(C)Certain life insurance and endowment contracts#
Except as provided in paragraph (10) and except to the extent prescribed by the Secretary by regulations, this paragraph shall apply to any amount not received as an annuity which is received under a life insurance or endowment contract.
(D)Contracts under qualified plans#
Except as provided in paragraph (8), this paragraph shall apply to any amount received—
(i) from a trust described in section 401(a) which is exempt from tax under section 501(a),
(ii) from a contract— (I) purchased by a trust described in clause (i), (II) purchased as part of a plan described in section 403(a), (III) described in section 403(b), or (IV) provided for employees of a life insurance company under a plan described in section 818(a)(3), or
(iii) from an individual retirement account or an individual retirement annuity.
Any dividend described in section 404(k) which is received by a participant or beneficiary shall, for purposes of this subparagraph, be treated as paid under a separate contract to which clause (ii)(I) applies.
(D)(i)#
from a trust described in section 401(a) which is exempt from tax under section 501(a),
(D)(ii)#
from a contract—
(I) purchased by a trust described in clause (i),
(II) purchased as part of a plan described in section 403(a),
(III) described in section 403(b), or
(IV) provided for employees of a life insurance company under a plan described in section 818(a)(3), or
(D)(ii)(I)
(E)Full refunds, surrenders, redemptions, and maturities#
This paragraph shall apply to—
(i) any amount received, whether in a single sum or otherwise, under a contract in full discharge of the obligation under the contract which is in the nature of a refund of the consideration paid for the contract, and
(ii) any amount received under a contract on its complete surrender, redemption, or maturity.
In the case of any amount to which the preceding sentence applies, the rule of paragraph (2)(A) shall not apply.
(E)(i)#
any amount received, whether in a single sum or otherwise, under a contract in full discharge of the obligation under the contract which is in the nature of a refund of the consideration paid for the contract, and
(E)(ii)#
any amount received under a contract on its complete surrender, redemption, or maturity.