Whole Life Insurance Policy Face Value: $100,000Cash Value: $8,800Owner: StephenBeneficiary: Valerie

Whole Life Insurance Policy Face Value: $100,000Cash Value: $8,800Owner: StephenBeneficiary: ValerieInsured: StephenPolicy Dividend: $300The McNamaras itemized deductions for their federal return last year. Currently, neither Valerie nor Stephen has access to a qualified retirement plan through their work and they have not funded IRAs up to this point in time. They have access to a Section 125 flexible spending account through Valerie’s employer. To date, they have not funded the account. Open enrollment is coming up and lasts for the next 30 days. For purposes of solving this case, use the tax information shown below.