IRC Section 7702 Transition Guidelines

All variable universal, index universal and universal life insurance products issued Jan. 1, 2021 through June 13, 2021, initially were administered using the prior 7702 contribution limits. However, effective July 26, 2021, all impacted policies were updated to reflect the new contribution limits. Policyholders who chose the cash value accumulation test (CVAT) will receive a client letter  with a revised policy schedule page reflecting the updated corridor factors. There is no action required by you or your clients. Policyholders who chose the guideline premium test (GPT) will not receive a new policy schedule. If you would like further information on making any modifications to the policy, please refer to the transition guidelines. The FLX IUL policies new contributions limits are not complete, we will provide more communication once the transition and mailing are done. Please review the notice for more information.