Tax Reform Act of 1984 (TRA)

{
  "id": "MLC-T-INS-003286",
  "term": "Tax Reform Act of 1984 (TRA)",
  "field": "Insurance and risk management",
  "definition": "A piece of United States federal legislation that substantially altered the tax treatment of life insurance companies and their products. The Tax Reform Act of 1984 (TRA) established a new definition of life insurance for federal income tax purposes, requiring policies to meet either a cash value accumulation test or a guideline premium test to receive favorable tax treatment. This act also changed the rules for calculating tax-deductible reserves and addressed the taxation of variable life insurance and annuity contracts.",
  "abbreviation": "TRA",
  "url": "https://mlchart.com/terminology/insurance/tax-reform-act-of-1984-tra/"
}