What is the modified endowment contract amount for 2014 tax year? 
What is the amount for a modified endowment contract for the 2014 tax year ? Unfortunately , you are mixing your investment or plan up . There is no annual guideline for a Modified Endowment Contract . You are thinking of qualified money contributions and confusing the two . Determination of a modified contract is something that can occur at any time if the extra monies applied to a policy trigger a formula known as the 7 pay test . When extra money is suggested to be added to a policy , the insurance company performs the 7 pay test on those funds and determines if the addition of those funds will trigger a MEC , before the funds are applied . More often than not , a deposit of extra funds triggers a MEC at some future date . If that 's the case , the policy does not become aMEC until that date . So money could sit and grow for several years , even decades without becoming a MEC . As the policy draws closer to the MEC date , simply taking money out of the policy can eliminate the MEC . There are several other ways to eliminate the MEC classification as well . 