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ContentsDepartment of the TreasuryInternal Revenue Service

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

General Information . . . . . . . . . . . . . . . . . . . . . . . . 2

Publication 939Taxation of Periodic Payments . . . . . . . . . . . . . . . 3

(Rev. April 2003)Investment in the Contract . . . . . . . . . . . . . . . . . 3

Cat. No. 10686KExpected Return . . . . . . . . . . . . . . . . . . . . . . . . 5

Computation Under the General Rule . . . . . . . . . 6

How To Use Actuarial Tables . . . . . . . . . . . . . . . . . 8General RuleWorksheets for Determining Taxable

Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11for PensionsActuarial Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Requesting a Ruling on Taxation of Annuity . . . . . 76and AnnuitiesTax Information Sheet . . . . . . . . . . . . . . . . . . . . 77

How To Get Tax Help . . . . . . . . . . . . . . . . . . . . . . . 79

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

IntroductionThis publication gives you the information you need todetermine the tax treatment of your pension and annuityincome under the General Rule. Generally, each of yourmonthly annuity payments is made up of two parts: thetax-free part that is a return of your net cost, and thetaxable balance.

What is the General Rule. The General Rule is one of thetwo methods used to figure the tax-free part of each annu-ity payment based on the ratio of your investment in the

contract to the total expected return. The other method isthe Simplified Method, which is discussed in Publication575, Pension and Annuity Income.

Who must use the General Rule. Use this publication ifyou receive pension or annuity payments from:

1) A nonqualified plan (for example, a private annuity,a purchased commercial annuity, or a nonqualifiedemployee plan),

2) A qualified plan if:

a) Your annuity starting date is beforeNovember19, 1996 (and after July 1, 1986), and you do not

qualify to use, or choose not to use, the SimplifiedMethod, or

b) You are 75 or over and the annuity payments areguaranteed for at least 5 years (regardless ofyour annuity starting date).

The following are qualified plans.

A qualified employee plan.

A qualified employee annuity.

A tax-sheltered annuity (TSA) plan or contract.


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If you cannot use the General Rule. If your annuity 525 Taxable and Nontaxable Incomestarting date is after November 18, 1996, you must use the

571 Tax-Sheltered Annuity Plans (403(b) Plans)Simplified Method for annuity payments from a qualified

575 Pension and Annuity Incomeplan. This method is covered in Publication 575.If, at the time the annuity payments began, you were at

590 Individual Retirement Arrangements (IRAs)least 75 and were entitled to annuity payments from a

721 Tax Guide to U.S. Civil Service Retirementqualified plan with fewer than 5 years of guaranteed pay-Benefitsments, you must use the Simplified Method.

910 Guide To Free Tax ServicesTopics not covered in this publication. Certain topics

related to pensions and annuities are not covered in this Form (and Instructions)publication. They include:

1099-R Distributions From Pensions, Annuities, Simplified Method. This method is covered in Publi-

Retirement or Profit-Sharing Plans, IRAs,cation 575. That publication also covers nonperiodicInsurance Contracts, etc.payments (amounts not received as an annuity) from

a qualified pension or annuity plan, rollovers, special See How To Get Tax Help, near the end of this publica-averaging and capital gain treatment of lump-sum tion for information about getting these publications anddistributions, and special additional taxes on early forms.distributions, excess distributions, and excess accu-mulations (not making required minimum distribu-tions).

General Information Individual retirement arrangements (IRAs). Infor-

mation on the tax treatment of amounts you receive Some of the terms used in this publication are defined infrom an IRA is included in Publication 590, Individual the following paragraphs.Retirement Arrangements (IRAs).

A pension is generally a series of payments made Life insurance payments. If you receive life insur- to you after you retire from work. Pension payments

ance payments because of the death of the insured are made regularly and are for past services with anperson, get Publication 525, Taxable and Nontax- employer.able Income, for information on the tax treatment of

An annuity is a series of payments under a contract.the proceeds.You can buy the contract alone or you can buy itwith the help of your employer. Annuity payments

Help from IRS. If, after reading this publication, you need are made regularly for more than one full year.help to figure the taxable part of your pension or annuity,the IRS can do it for you for a fee. For information on this

Types of pensions and annuities. Particular types ofservice, see Requesting a Ruling on Taxation of Annuity,

pensions and annuities include:later.

Comments and suggestions. We welcome your com- 1) Fixed period annuities. You receive definitements about this publication and your suggestions for amounts at regular intervals for a definite length offuture editions. time.

You can e-mail us while visiting our web site at2) Annuities for a single life. You receive definite

www.irs.gov.amounts at regular intervals for life. The paymentsYou can write to us at the following address:end at death.

Internal Revenue Service 3) Joint and survivor annuities. The first annuitantIndividual Forms and Publications Branch receives a definite amount at regular intervals for life.W:CAR:MP:T:I After he or she dies, a second annuitant receives a1111 Constitution Ave. NW definite amount at regular intervals for life. The

Washington, DC 20224 amount paid to the second annuitant may or may notdiffer from the amount paid to the first annuitant.

We respond to many letters by telephone. Therefore, it 4) Variable annuities. You receive payments that maywould be helpful if you would include your daytime phone vary in amount for a definite length of time or for life.number, including the area code, in your correspondence. The amounts you receive may depend upon such

variables as profits earned by the pension or annuityUseful Items funds or cost-of-living indexes.You may want to see:

5) Disability pensions. You are under minimum retire-ment age and receive payments because you retired

Publicationon disability. If, at the time of your retirement, you

524 Credit for the Elderly or the Disabled were permanently and totally disabled, you may be

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eligible for the credit for the elderly or the disabled In general, you can recover your net cost of the pensionor annuity tax free over the period you are to receive thediscussed in Publication 524.payments. The amount of each payment that is more than

If your annuity starting date is after November 18, 1996,the part that represents your net cost is taxable. Under the

the General Rule cannot be used for the following quali-General Rule, the part of each annuity payment that repre-

fied plans.sents your net cost is in the same proportion that yourinvestment in the contract is to your expected return. A qualified employee plan is an employers stockThese terms are explained in the following discussions.bonus, pension, or profit-sharing plan that is for the

exclusive benefit of employees or their beneficiaries.This plan must meet Internal Revenue Code require- Investment in the Contractments. It qualifies for special tax benefits, includingtax deferral for employer contributions and rollover In figuring how much of your pension or annuity is taxabledistributions. under the General Rule, you must figure your investment in

the contract. A qualified employee annuity is a retirement annu-

First, find your net costof the contract as of the annuityity purchased by an employer for an employee under

starting date (defined later). To find this amount, you musta plan that meets Internal Revenue Code require-

first figure the total premiums, contributions, or otherments.

amounts paid. This includes the amounts your employercontributed if you were required to include these amounts A tax-sheltered annuity is a special annuity plan orin income. It also includes amounts you actually contrib-contract purchased for an employee of a publicuted (except amounts for health and accident benefits andschool or tax-exempt organization.deductible voluntary employee contributions).

From this total cost you subtract:The General Rule is used to figure the tax treatment of

various types of pensions and annuities, including non- 1) Any refunded premiums, rebates, dividends, or un-qualified employee plans. A nonqualified employee planrepaid loans (any of which were not included in youris an employers plan that does not meet Internal Revenueincome) that you received by the later of the annuityCode requirements. It does not qualify for most of the taxstarting date or the date on which you received yourbenefits of a qualified plan.first payment.

Annuity worksheets. The worksheets found near the 2) Any additional premiums paid for double indemnityend of the text of this publication may be useful to you in or disability benefits.figuring the taxable part of your annuity.

3) Any other tax-free amounts you received under theRequest for a ruling. If you are unable to determine the contract or plan before the later of the dates in (1).income tax treatment of your pension or annuity, you mayask the Internal Revenue Service to figure the taxable part The annuity starting date is the later of the first day of theof your annuity payments. This is treated as a request for a

first period for which you receive payment under the con-ruling. See Requesting a Ruling on Taxation of Annuity tract or the date on which the obligation under the contractnear the end of this publication. becomes fixed.

Withholding tax and estimated tax. Your pension orExample. On January 1 you completed all your pay-

annuity is subject to federal income tax withholding unlessments required under an annuity contract providing for

you choose not to have tax withheld. If you choose not tomonthly payments starting on August 1, for the period

have tax withheld from your pension or annuity, or if you dobeginning July 1. The annuity starting date is July 1. This is

not have enough income tax withheld, you may have tothe date you use in figuring your investment in the contract

make estimated tax payments.and your expected return (discussed later).

AdjustmentsTaxation of Periodic Payments

If any of the following items apply, adjust (add or subtract)This section explains how the periodic payments you re-your total cost to find your net cost.

ceive under a pension or annuity plan are taxed under theGeneral Rule. Periodic payments are amounts paid at Foreign employment. If you worked abroad, your costregular intervals (such as weekly, monthly, or yearly) for a includes amounts contributed by your employer that wereperiod of time greater than one year (such as for 15 years not includible in your gross income. The contributions thator for life). These payments are also known as amounts apply were made either:received as an annuity.

1) Before 1963 by your employer for that work, orIf you receive an amount from your plan that is anonperiodic payment(amount not received as 2) After 1962 by your employer for that work if youan annuity), see Taxation of Nonperiodic Pay- performed the services under a plan that existed on

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ments in Publication 575. March 12, 1962.

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Death benefit exclusion. If you are the beneficiaryof a1) The payments are guaranteed for less than 21/2deceased employee (or former employee), who died

years, andbefore August 21, 1996, you may qualify for a deathbenefit exclusion of up to $5,000. The beneficiary of a 2) The annuitant is:deceased employee who died after August 20, 1996, will

a) Age 57 or younger (if using the new (unisex)not qualify for the death benefit exclusion.annuity tables),

How to adjust your total cost. If you are eligible, treatb) Age 42 or younger (if male and using the oldthe amount of any allowable death benefit exclusion as

annuity tables), oradditional cost paid by the employee. Add it to the cost or

unrecovered cost of the annuity at the annuity starting c) Age 47 or younger (if female and using the olddate. See Example 3under Computation Under Generalannuity tables).

Rulefor an illustration of the adjustment to the cost of thecontract.

If you do not meet these requirements, you will have tofigure the value of the refund feature, as explained in theFree IRS help. If you are eligible for this exclusion andfollowing discussion.need help computing the amount of the death benefit

exclusion, see Requesting a Ruling on Taxation of Annuity,Examples. The first example shows how to figure thenear the end of this publication.

value of the refund feature when there is only one benefi-Net cost. Your total cost plus certain adjustments and

ciary. Example 2 shows how to figure the value of theminus other amounts already recovered before the annuity

refund feature when the contract provides, in addition to astarting date is your net cost. This is the unrecovered

whole life annuity, one or more temporary life annuities forinvestment in the contract as of the annuity starting date. If

the lives of children. In both examples, the taxpayer electsyour annuity starting date is after 1986, this is the maxi-

to use Tables V through VIII. If you need the value of themum amount that you may recover tax free under the refund feature for a joint and survivor annuity, write to thecontract.

Internal Revenue Service as explained under Requestinga Ruling on Taxation of Annuity, near the end of thisRefund feature. Adjustment for the value of the refundpublication.feature is only applicable when you report your pension or

annuity under the General Rule. Your annuity contract hasExample 1. At age 65, Barbara bought for $21,053 ana refund feature if:

annuity with a refund feature. She will get $100 a month forlife. Barbaras contract provides that if she does not live1) The expected return ( discussed later) of an annuitylong enough to recover the full $21,053, similar paymentsdepends entirely or partly on the life of one or morewill be made to her surviving beneficiary until a total ofindividuals,$21,053 has been paid under the contract. In this case, the

2) The contract provides that payments will be made tocontract cost and the total guaranteed return are the same

a beneficiary or the estate of an annuitant on or after($21,053). Barbaras investment in the contract is figured

the death of the annuitant if a stated amount or a as follows:stated number of payments has not been paid to theannuitant or annuitants before death, and Net cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $21,053

Amount to be received annually . . . . . . . . . . . . . $1,2003) The payments are a refund of the amount you paid Number of years for which payment is guaranteed

($21,053 divided by $1,200) . . . . . . . . . . . . . . . . 17.54for the annuity contract.Rounded to nearest whole number of years . . . . . 18Percentage from Actuarial Table VII for age 65 withIf your annuity has a refund feature, you must reduce18 years of guaranteed payments . . . . . . . . . . . . 15%your net cost of the contract by the value of the refundValue of the refund feature (rounded to the nearest dollar)

feature (figured using Table III or VII at the end of this 15% of $21,053 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,158publication, also see How To Use Actuarial Tables, later) Investment in the contract, adjusted for value of refund

feature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $17,895to find the investment in the contract.

Zero value of refund feature. For a joint and survivor If the total guaranteed return were less than the $21,053annuity, the value of the refund feature is zeroif: net cost of the contract, Barbara would apply the appropri-

ate percentage from the tables to the lesser amount. For1) Both annuitants are age 74 or younger,

example, if the contract guaranteed the $100 monthlypayments for 17 years to Barbaras estate or beneficiary if2) The payments are guaranteed for less than 21/2she were to die before receiving all the payments for thatyears, andperiod, the total guaranteed return would be $20,400

3) The survivors annuity is at least 50% of the first($100 12 17 years). In this case, the value of the refund

annuitants annuity.feature would be $2,856 (14% of $20,400) and Barbaras

For a single-life annuity without survivor benefit, the investment in the contract would be $18,197 ($21,053value of the refund feature is zero if: minus $2,856) instead of $17,895.

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Example 2. John died while still employed. His widow, You must multiply the amount of the annual payment by aEleanor, age 48, receives $171 a month for the rest of her multiple based on your life expectancy as of the annuitylife. Johns son, Elmer, age 9, receives $50 a month until starting date. These multiples are set out in actuarial Ta-he reaches age 18. Johns contributions to the retirement bles I and V near the end of this publication (see How Tofund totaled $7,559.45, with interest on those contributions Use Actuarial Tables, later).of $1,602.53. The guarantee or total refund feature of the You may need to adjust these multiples if the paymentscontract is $9,161.98 ($7,559.45 plus $1,602.53). are made quarterly, semiannually, or annually. See Adjust-

The adjustment in the investment in the contract is ments to Tables I, II, V, VI, and VIA following Table I.figured as follows:

Example. Henry bought an annuity contract that will

A) Expected return:* give him an annuity of $500 a month for his life. If at the1)Widows expected return:annuity starting date Henrys nearest birthday is 66, theAnnual annuity ($171 12) . . . . . . . . . . . $2,052

Multiplied by factor from Table V expected return is figured as follows:(nearest age 48) . . . . . . . . . . . . . . . . 34.9 $71,614.80

2)Childs expected return: Annual payment ($500 12 months) . . . . . . . . . . . . . . . . $6,000Annual annuity ($50 12) . . . . . . . . . . . $600 Multiple shown in Table V, age 66 . . . . . . . . . . . . . . . . . . 19.2Multiplied by factor from Expected return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $115,200

Table VIII (nearest age 9If the payments were to be made to Henry quarterly andfor term of 9 years) . . . . . . . . . . . . . . . 9.0 5,400.00

3)Total expected return . . . . . . . . . . . . . . . $77,014.80 the first payment was made one full month after the annuitystarting date, Henry would adjust the 19.2 multiple by +.1.

B) Adjustment for refund feature:His expected return would then be $115,800 ($6,000 1) Contributions (net cost) . . . . . . . . . . . . . . . . . . . . $7,559.4519.3).2)Guaranteed amount (contributions of $7,559.45 plus

interest of $1,602.53) . . . . . . . . . . . . . . . . . . . . . . $9,161.983)Minus: Expected return under childs (temporary life) Annuity for shorter of life or specified period. With this

annuity (A(2)) . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,400.00 type of annuity, you are to get annuity payments either for4)Net guaranteed amount . . . . . . . . . . . . . . . . . . . . $3,761.98 the rest of your life or until the end of a specified period,5)Multiple from Table VII (nearest age 48 for 2 years

whichever period is shorter. To figure your expected re-duration (recovery of $3,761.98 at $171 a month tonearest whole year)) . . . . . . . . . . . . . . . . . . . . . . 0% turn, multiply the amount of your annual payment by a

6)Adjustment required for value of refund feature multiple in Table IV or VIII for temporary life annuities. Findrounded to the nearest whole dollar

the proper multiple based on your sex (if using Table IV),(0% $3,761.98, the smaller of B(3) or B(6)) . . . . . . 0your age at the annuity starting date, and the nearest

*Expected return is the total amount you and other eligible annuitants can expectwhole number of years in the specified period.to receive under the contract. See the discussion of expected return, later in this

publication.

Example. Harriet purchased an annuity this year thatFree IRS help. If you need to request assistance to will pay her $200 each month for five years or until she

figure the value of the refund feature, see Requesting a dies, whichever period is shorter. She was age 65 at herRuling on Taxation of Annuity, near the end of this publica- birthday nearest the annuity starting date. She figures thetion.

expected return as follows:Annual payment ($200 12 months) . . . . . . . . . . . . . . . . $2,400Expected Return Multiple shown in Table VIII, age 65, 5-year term . . . . . . . . 4.9Expected return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,760

Your expected return is the total amount you and othereligible annuitants can expect to receive under the con- She uses Table VIII (not Table IV) because all hertract. The following discussions explain how to figure the contributions were made after June 30, 1986.expected return with each type of annuity. SeeSpecial Elections, later.

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A persons age, for purposes of figuring the ex-pected return, is the age at the birthday nearest to Joint and survivor annuities. If you have an annuity thatthe annuity starting date. pays you a periodic income for life and after your death

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provides an identical lifetime periodic income to yourspouse (or some other person), you figure the expectedFixed period annuity. If you will get annuity payments for

return based on your combined life expectancies. To figurea fixed number of years, without regard to your life expec-the expected return, multiply the annual payment by atancy, you must figure your expected return based on thatmultiple in Table II or VI based on your joint life expectan-fixed number of years. It is the total amount you will getcies. If your payments are made quarterly, semiannually,beginning at the annuity starting date. You will receiveor annually, you may need to adjust these multiples. Seespecific periodic payments for a definite period of time,Adjustments to Tables I, II, V, VI, and VIA following Table Isuch as a fixed number of months (but not less than 13). Tonear the end of this publication.figure your expected return, multiply the fixed number of

months for which payments are to be made by the amountExample. John bought a joint and survivor annuity pro-of the payment specified for each period.

viding payments of $500 a month for his life, and, after hisSingle life annuity. If you are to get annuity payments for death, $500 a month for the remainder of his wifes life. Atthe rest of your life, find your expected return as follows. Johns annuity starting date, his age at his nearest birthday

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is 70 and his wifes at her nearest birthday is 67. The Step 2. Figure your expected return.expected return is figured as follows:

Step 3. Divide Step 1 by Step 2 and round to three deci-Annual payment ($500 12 months) . . . . . . . . . . . . . . . . $6,000 mal places. This will give you the exclusion percentage.Multiple shown in Table VI, ages 67 and 70 . . . . . . . . . . . 22.0Expected return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $132,000 Step 4. Multiply the exclusion percentage by the first

regular periodic payment. The result is the tax-free part ofeach pension or annuity payment.Different payments to survivor. If your contract provides

The tax-free part remains the same even if the totalthat payments to a survivor annuitant will be differentfrompayment increases or you outlive the life expectancy factorthe amount you receive, you must use a computationused. If your annuity starting date is after 1986, the totalwhich accounts for both the joint lives of the annuitants andamount of annuity income that is tax free over the yearsthe life of the survivor.cannot exceed your net cost.

Each annuitant applies the same exclusion percentageExample 1. Gerald bought a contract providing for pay-to his or her initial payment called for in the contract.ments to him of $500 a month for life and, after his death,

payments to his wife, Mary, of $350 a month for life. If, atStep 5. Multiply the tax-free part of each payment (step 4)

the annuity starting date, Geralds nearest birthday is 70by the number of payments received during the year. This

and Marys is 67, the expected return under the contract iswill give you the tax-free part of the total payment for the

figured as follows:year.

Combined multiple for Gerald and Mary, ages 70In the first year of your annuity, your first paymentand 67 (from Table VI) . . . . . . . . . . . . . . . . . . . 22.0or part of your first payment may be for a fractionMultiple for Gerald, age 70 (from Table V) . . . . . . 16.0

Difference: Multiple applicable to Mary . . . . . . . . . 6.0 of the payment period. This fractional amount isTIP

Geralds annual payment ($500 12) . . . . . . . . . $6,000 multiplied by your exclusion percentage to get the tax-freeGeralds multiple . . . . . . . . . . . . . . . . . . . . . . . 16.0 part.Geralds expected return . . . . . . . . . . . . . . . . . . $96,000Marys annual payment ($350 12) . . . . . . . . . . $4,200Marys multiple . . . . . . . . . . . . . . . . . . . . . . . . 6.0 Step 6. Subtract the tax-free part from the total paymentMarys expected return . . . . . . . . . . . . . . . . . . . 25,200

you received. The rest is the taxable part of your pension orTotal expected return under the contract . . . . . $121,200annuity.

Example 2. Your husband died while still employed. Example 1. You purchased an annuity with an invest-Under the terms of his employers retirement plan, you are ment in the contract of $10,800. Under its terms, theentitled to get an immediate annuity of $400 a month for annuity will pay you $100 a month for life. The multiple forthe rest of your life or until you remarry. Your daughters, your age (age 65) is 20.0 as shown in Table V. YourMarie and Jean, are each entitled to immediate temporary expected return is $24,000 (20 12 $100). Your cost oflife annuities of $150 a month until they reach age 18. $10,800, divided by your expected return of $24,000,

You were 50 years old at the annuity starting date. Marie equals 45.0%. This is the percentage you will not have to

was 16 and Jean was 14. Using the multiples shown in include in income.Tables V and VIII at the end of this publication, the total Each year, until your net cost is recovered, $540 (45%expected return on the annuity starting date is $169,680, of $1,200) will be tax free and you will include $660 ($1,200figured as follows: $540) in your income. If you had received only six

payments of $100 ($600) during the year, your exclusionWidow, age 50 (multiple from Table V33.1 $4,800

would have been $270 (45% of $100 6 payments).annual payment) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $158,880Marie, age 16 for 2 years duration (multiple from TableVIII2.0 $1,800 annual payment) . . . . . . . . . . . . . . . . 3,600 Example 2. Gerald bought a joint and survivor annuity.Jean, age 14 for 4 years duration (multiple from Table VIII Geralds investment in the contract is $62,712 and the4.0 $1,800 annual payment) . . . . . . . . . . . . . . . . . . . . 7,200

expected return is $121,200. The exclusion percentage isTotal expected return . . . . . . . . . . . . . . . . . . . . . . . . . $169,68051.7% ($62,712 $121,200). Gerald will receive $500 a

No computation of expected return is made based on month ($6,000 a year). Each year, until his net cost isyour husbands age at the date of death because he died recovered, $3,102 (51.7% of his total payments received ofbefore the annuity starting date.

$6,000) will be tax free and $2,898 ($6,000 $3,102) willbe included in his income. If Gerald dies, his wife will

Computation Under receive $350 a month ($4,200 a year). If Gerald had notrecovered all of his net cost before his death, his wife willthe General Ruleuse the same exclusion percentage (51.7%). Each year,until the entire net cost is recovered, his wife will receiveUnder the General Rule, you figure the taxable part of your$2,171.40 (51.7% of her payments received of $4,200) taxannuity by using the following steps:free. She will include $2,028.60 ($4,200 $2,171.40) in

Step 1. Figure the amount of your investment in the con- her income tax return.tract, including any adjustments for the refund feature andthe death benefit exclusion, if applicable. See Death bene- Example 3. Using the same facts as Example 2 underfit exclusion, earlier. Different payments to survivor, you are to receive an an-

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nual annuity of $4,800 until you die or remarry. Your two annuity payments as of the annuity starting date (22.5% daughters each receive annual annuities of $1,800 until $147 12 = $396.90 for a full year). The increase of $228they reach age 18. Your husband contributed $25,576 to ($1,992 $1,764 (12 $147)) is fully taxable.the plan. You are eligible for the $5,000 death benefit

Variable annuities. For variable annuity payments, figureexclusion because your husband died before August 21,the amount of each payment that is tax free by dividing1996.your investment in the contract (adjusted for any refund

Adjusted Investment in the Contract feature) by the total number of periodic payments youexpect to get under the contract.

Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,576If the annuity is for a definite period, you determine thePlus: Death benefit exclusion . . . . . . . . . . . . . . . . . . . . . 5,000

total number of payments by multiplying the number ofAdjusted investment in the contract . . . . . . . . . . . . . . . . . $30,576 payments to be made each year by the number of yearsThe total expected return, as previously figured (in Ex-

you will receive payments. If the annuity is for life, youample 2 under Different payments to survivor), is

determine the total number of payments by using a multi-$169,680. The exclusion percentage of 18.0% ($30,576

ple from the appropriate actuarial table.$169,680) applies to the annuity payments you and eachof your daughters receive. Each full year $864 (18.0%

Example. Frank purchased a variable annuity at age$4,800) will be tax free to you, and you must include

65. The total cost of the contract was $12,000. The annuity$3,936 in your income tax return. Each year, until age 18,

starting date is January 1 of the year of purchase. His$324 (18.0% $1,800) of each of your daughters pay-

annuity will be paid, starting July 1, in variable annualments will be tax free and each must include the balance,

installments for his life. The tax-free amount of each pay-$1,476, as income on her own income tax return.

ment, until he has recovered his cost of his contract, is:

Part-year payments. If you receive payments for onlyInvestment in the contract . . . . . . . . . . . . . . . . . . . . . . . $12,000

part of a year, apply the exclusion percentage to the first Number of expected annual payments (multiple for age 65from Table V) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20regular periodic payment, and multiply the result by theTax-free amount of each payment ($12,000 20) . . . . . . . $600number of payments received during the year. If you re-

ceived a fractional payment, follow Step 5, discussed ear- If Franks first payment is $920, he includes only $320lier. This gives you the tax-free part of your total payment. ($920 $600) in his gross income.

If the tax-free amount for a year is more than theExample. On September 28, Mary bought an annuity payments you receive in that year, you may choose,

contract for $22,050 that will give her $125 a month for life, when you receive the next payment, to refigure the tax-freebeginning October 30. The applicable multiple from Table part. Divide the amount of the periodic tax-free part that isV is 23.3 (age 61). Her expected return is $34,950 ($125 more than the payment you received by the remaining12 23.3). Marys investment in the contract of $22,050, number of payments you expect. The result is added to thedivided by her expected return of $34,950, equals 63.1%. previously figured periodic tax-free part. The sum is theEach payment received will consist of 63.1% return of cost amount of each future payment that will be tax free.and 36.9% taxable income, until her net cost of the con-tract is fully recovered. During the first year, Mary received Example. Using the facts of the previous examplethree payments of $125, or $375, of which $236.63 (63.1% about Frank, assume that after Franks $920 payment, he $375) is a return of cost. The remaining $138.37 is received $500 in the following year, and $1,200 in the yearincluded in income. after that. Frank does not pay tax on the $500 (second

year) payment because $600 of each annual pensionIncrease in annuity payments. The tax-free amount re- payment is tax free. Since the $500 payment is less thanmains the same as the amount figured at the annuity the $600 annual tax-free amount, he may choose tostarting date, even if the payment increases. All increases refigure his tax-free part when he receives his $1,200 (thirdin the installment payments are fully taxable. year) payment, as follows:

Example. Joes wife died while she was still employed Amount tax free in second year . . . . . . . . . . . . . . . . . . . $600.00Amount received in second year . . . . . . . . . . . . . . . . . . . 500.00and, as her beneficiary, he began receiving an annuity ofDifference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100.00$147 per month. In figuring the taxable part, Joe elects toNumber of remaining payments after the first 2 payments

use Tables V through VIII. The cost of the contract was (age 67, from Table V) . . . . . . . . . . . . . . . . . . . . . . . . . 18.4Amount to be added to previously determined annual$7,938, consisting of the sum of his wifes net contribu-tax-free part ($100 18.4) . . . . . . . . . . . . . . . . . . . . . . . $5.43tions, adjusted for any refund feature. His expected returnRevised annual tax-free part for third and later years ($600 +

as of the annuity starting date is $35,280 (age 65, multiple $5.43) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $605.43of 20.0 $1,764 annual payment). The exclusion percent- Amount taxable in third year ($1,200 $605.43) . . . . . . $594.57age is $7,938 $35,280, or 22.5%. During the year hereceived 11 monthly payments of $147, or $1,617. Of this If you choose to refigure your tax-free amount, youamount, 22.5% $147 11 ($363.83) is tax free as a must file a statement with your income tax return statingreturn of cost and the balance of $1,253.17 is taxable. that you are refiguring the tax-free amount in accordance

Later, because of a cost-of-living increase, his annuity with the rules of section 1.724(d)(3) of the Income Taxpayment was increased to $166 per month, or $1,992 a Regulations. The statement must also show the followingyear (12 $166). The tax-free part is still only 22.5% of the information:

Page 7


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1) The annuity starting date and your age on that date. How To Use Actuarial Tables2) The first day of the first period for which you received

In figuring, under the General Rule, the taxable part of youran annuity payment in the current year.annuity payments that you are to get for the rest of your life

3) Your investment in the contract as originally figured.(rather than for a fixed number of years), you must use oneor more of the actuarial tables in this publication.4) The total of all amounts received tax free under the

annuity from the annuity starting date through thefirst day of the first period for which you received an Unisex Annuity Tablesannuity payment in the current tax year.

Effective July 1, 1986, the Internal Revenue Serviceadopted new annuity Tables V through VIII, in which yoursex is not considered when determining the applicableExclusion Limitsfactor. These tables correspond to the old Tables I through

Your annuity starting date determines the total amount of IV. In general, Tables V through VIII must be used if youmade contributions to the retirement plan after June 30,annuity income that you can exclude from income over the1986. If you made no contributions to the plan after Juneyears.30, 1986, generally you must use only Tables I through IV.However, if you received an annuity payment after June

Exclusion limited to net cost. If your annuity starting30, 1986, you may elect to use Tables V through VIII (see

date is after 1986, the total amount of annuity income thatAnnuity received after June 30, 1986, later).

you can exclude over the years as a return of your costcannot exceed your net cost (figured without any reduction

Special Electionsfor a refund feature). This is the unrecovered investmentin the contractas of the annuity starting date.Although you generally must use Tables V through VIII if

If your annuity starting date is after July 1, 1986, any you made contributions to the retirement plan after Juneunrecovered net cost at your (or last annuitants) death is 30, 1986, and Tables I through IV if you made no contribu-allowed as a miscellaneous itemized deduction on the final tions after June 30, 1986, you can make the followingreturn of the decedent. This deduction is not subject to the special elections to select which tables to use.2%-of-adjusted-gross-income limit.

Contributions made both before July 1986 and afterJune 1986. If you made contributions to the retirementExample 1. Your annuity starting date is after 1986.plan both before July 1986 and after June 1986, you mayYour total cost is $12,500, and your net cost is $10,000,elect to use Tables I through IV for the pre-July 1986 costtaking into account certain adjustments. There is no refundof the contract, and Tables V through VIII for the post-Junefeature. Your monthly annuity payment is $833.33. Your1986 cost. (See the examples below.)exclusion ratio is 12% and you exclude $100 a month.

Making the election. Attach this statement to yourYour exclusion ends after 100 months, when you haveincome tax return for the first year in which you receive anexcluded your net cost of $10,000. Thereafter, your annu-annuity:ity payments are fully taxable.

I elect to apply the provisions of paragraph (d) ofExample 2. The facts are the same as in Example 1, section 1.726 of the Income Tax Regulations.

except that there is a refund feature, and you die after 5 The statement must also include your name, address,years with no surviving annuitant. The adjustment for the social security number, and the amount of the pre-Julyrefund feature is $1,000, so the investment in the contract 1986 investment in the contract.is $9,000. The exclusion ratio is 10.8%, and your monthly If your investment in the contract includes post-Juneexclusion is $90. After 5 years (60 months), you have 1986 contributions to the plan, and you do not make therecovered tax free only $5,400 ($90 x 60). An itemized election to use Tables I through IV and Tables V throughdeduction for the unrecovered net cost of $4,600 ($10,000 VIII, then you can only use Tables V through VIII in figuringnet cost minus $5,400) may be taken on your final income the taxable part of your annuity. You must also use Tables

tax return. Your unrecovered investment is determined V through VIII if you are unable or do not wish to determinethe portions of your contributions which were made beforewithout regard to the refund feature adjustment, discussedJuly 1, 1986, and after June 30, 1986.earlier, under Adjustments.

Advantages of election. In general, a lesser amount ofeach annual annuity payment is taxable if you separatelyExclusion not limited to net cost. If your annuity startingfigure your exclusion ratio for pre-July 1986 and post-Junedate was before 1987, you could continue to take your1986 contributions.monthly exclusion for as long as you receive your annuity.

If you choose a joint and survivor annuity, your survivor If you intend to make this election, save yourcontinues to take the survivors exclusion figured as of the records that substantiate your pre-July 1986 andannuity starting date. The total exclusion may be more post-June 1986 contributions. If the death benefit

TIP

than your investment in the contract. exclusion applies (see discussion, earlier), you do not have

Page 8


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Pre- Post-to apportion it between the pre-July 1986 and theJuly 1986 June 1986

post-June 1986 investment in the contract.

A.Adjustment for refund featureThe following examples illustrate the separate computa-1) Net cost . . . . . . . . . . . . . . . . . . . . . $53,100 $7,000

tions required if you elect to use Tables I through IV for 2) Annual annuity$12,000($53,100/$60,100 $12,000) . . . . . . . . $10,602your pre-July 1986 investment in the contract and Tables V

($7,000/$60,100 $12,000) . . . . . . . . $1,398through VIII for your post-June 1986 investment in the3) Guaranteed under the contract . . . . . $53,100 $7,000

contract. 4) Number of years guaranteed,rounded, A(3) A(2) . . . . . . . . . . . . . . 5 55) Applicable percentages . . . . . . . . . . 0% 0%Example 1. Bill, who is single, contributed $42,000 to6) Refund feature adjustment, A(5)

the retirement plan and will receive an annual annuity of smaller of A(1) or A(3) . . . . . . . . . . . . . 0 0$24,000 for life. Payment of the $42,000 contribution is

B.Investment in the contractguaranteed under a refund feature. Bill is 55 years old as of 1) Net cost . . . . . . . . . . . . . . . . . . . . . $53,100 $7,000

2) Refund feature adjustment . . . . . . . . 0 0the annuity starting date. For figuring the taxable part of3) Investment in the contract adjusted forBills annuity, he chose to make separate computations forrefund feature . . . . . . . . . . . . . . . . . . . $53,100 $7,000

his pre-July 1986 investment in the contract of $41,300,C.Expected return

and for his post-June 1986 investment in the contract of 1) Multiple for both annuitants from$700. Tables II and VI . . . . . . . . . . . . . . . . 25.4 28.8

2) Multiple for first annuitant fromPre- Post- Tables I and V . . . . . . . . . . . . . . . . . 16.9 22.5

July 1986 June 1986 3) Multiple applicable to survivingannuitant, subtract C(2) from C(1) . . . . 8.5 6.3

A. Adjustment for refund feature 4) Annual annuity to surviving annuitant $6,000 $6,0001) Net cost . . . . . . . . . . . . . . . . . . . . . $41,300 $700 5) Portion of expected return for2) Annual annuity$24,000 surviving annuitant, C(4) C(3) . . . . . $51,000 $37,800

($41,300/$42,000 $24,000) . . . . . . . . $23,600 6) Annual annuity to first annuitant . . . $12,000 $12,000($700/$42,000 $24,000) . . . . . . . . . . $400 7) Plus: Portion of expected return for

3) Guarantee under contract . . . . . . . . . . $41,300 $700 first annuitant, C(6) C(2) . . . . . . . . . $202,800 $270,0004) No. of years payments 8) Expected return for both annuitants,

guaranteed (rounded), A(3) A(2) . . . . 2 2 C(5) + C(7) . . . . . . . . . . . . . . . . . . . $253,800 $307,8005) Applicable percentage from

D.Tax-free part of annuityTables III and VII . . . . . . . . . . . . . . . . 1% 0%1) Exclusion ratio as a decimal, B(3) 6) Adjustment for value of refundC(8) . . . . . . . . . . . . . . . . . . . . . . . . .209 .023feature, A(5) smaller of A(1)2) Retirees tax-free part of annuity,or A(3) . . . . . . . . . . . . . . . . . . . . . . . $413 $0C(6) D(1) . . . . . . . . . . . . . . . . . . . $2,508 $276

B. Investment in the contract 3) Survivors tax-free part of annuity,1) Net cost . . . . . . . . . . . . . . . . . . . . . $41,300 $700 C(4) D(1) . . . . . . . . . . . . . . . . . . . $1,254 $1382) Minus: Amount in A(6) . . . . . . . . . . . . 413 03) Investment in the contract . . . . . . . . . $40,887 $700 The tax-free part of Als total annuity is $2,784 ($2,508 +

$276). The taxable part of his annuity is $9,216 ($12,000 C.Expected return1) Annual annuity receivable . . . . . . . . . $24,000 $24,000 $2,784). The exclusion over the years cannot exceed the2) Multiples from Tables I and V . . . . . . . 21.7 28.6 net cost of the contract (figured without any reduction for a3) Expected return, C(1) C(2) . . . . . . . . $520,800 $686,400

refund feature) if the annuity starting date is after 1986.D.Tax-free part of annuity After Als death, his widow will apply the same exclusion

1) Exclusion ratio as decimal,percentages (20.9% and 2.3%) to her annual annuity ofB(3) C(3) . . . . . . . . . . . . . . . . . . . . .079 .001

2) Tax-free part, C(1) D(1) . . . . . . . . . . $1,896 $24 $6,000 to figure the tax-free part of her annuity.

Annuity received after June 30, 1986. If you receive anThe tax-free part of Bills total annuity is $1,920 ($1,896annuity payment after June 30, 1986, (regardless of yourplus $24). The taxable part of his annuity is $22,080annuity starting date), you may elect to treat the entire cost($24,000 minus $1,920). If the annuity starting date is afterof the contract as post-June 1986 cost (even if you made1986, the exclusion over the years cannot exceed the netno post-June 1986 contributions to the plan) and usecost (figured without any reduction for a refund feature).Tables V through VIII. Once made, you cannot revoke theelection, which will apply to all payments during the yearExample 2. Al is age 62 at his nearest birthday to the

and in any later year.annuity starting date. Als wife is age 60 at her nearestMake the election by attaching the following statementbirthday to the annuity starting date. The joint and survivor

to your income tax return.annuity pays $1,000 per month to Al for life, and $500 perI elect, under section 1.729 of the Income Tax Regu-month to Als surviving wife after his death. The pre-July

lations, to treat my entire cost of the contract as a1986 investment in the contract is $53,100 and the

post-June 1986 cost of the plan.post-June 1986 investment in the contract is $7,000. Al

The statement must also include your name, address,makes the election described in Example 1. and social security number.

For purposes of this example, assume the refund fea- You should also indicate you are making this election ifture adjustment is zero. If an adjustment is required, IRS you are unable or do not wish to determine the parts ofwill figure the amount. See Requesting a Ruling on Taxa- your contributions which were made before July 1, 1986,tion of Annuitynear the end of this publication. and after June 30, 1986.

Page 9


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Disqualifying form of payment or settlement. If your investment in the contract. See regulations sectionannuity starting date is after June 30, 1986, and the con- 1.726(d)(3) for additional examples of disqualifying formstract provides for a disqualifying form of payment or settle- of payment or settlement. You can find the Income Taxment, such as an option to receive a lump sum in full Regulations in many libraries and at Internal Revenuedischarge of the obligation under the contract, the entire Service Offices.investment in the contract is treated as post-June 1986

Page 10


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Worksheet IFor Determining Taxable Annuity Under Regulations Section 1.72-6(d)(6)

Election For Single Annuitant With No Survivor Annuity

Pre-July 1986 Post-June 1986

A.

B. Investment in the Contract

C. Expected Return

1) Annual annuity:

12 times monthly annuity

2) Expected return multiples from Tables I and V

3) Expected return:

C(1) times C(2)

Tax-Free Part of Annuity

1) Exclusion ratio, as a decimal rounded to 3 places:B(3) divided by C(3)

2) Tax-free part of annuity:

C(1) times D(1)

Refund Feature Adjustment

1) Net cost (total cost less returned premiums, dividends, etc.)

2) Annual annuity allocation:

Portion of net cost in A(1) annual annuity

Net cost3) Guaranteed under the contract

4) Number of years guaranteed rounded to whole years:

A(3) divided by A(2)

5) Applicable percentages from Tables III and VII

6) Refund feature adjustment:

A(5) times lesser of A(1) or A(3)

1) Net cost:

A(1)


A(6)3) Investment in the contract adjusted for refund feature:

B(1) minus B(2)

D.

Page 11


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Worksheet IIFor Determining Taxable Annuity Under Regulations Section 1.72-6(d)(6)

Election For Joint and Survivor Annuity

Pre-July 1986 Post-June 1986

A.

C.

Refund Feature Adjustment

D.

Expected Return

1) Multiples for both annuitants, Tables II and VI

2) Multiple for retiree. Tables I and V

3) Multiple for survivor:

C(1) minus C(2)

Tax-Free Part of Annuity

1) Exclusion ratio, as a decimal rounded to 3 places:B(3) divided by C(8)

2) Retirees tax-free part of annuity:

C(6) times D(1)

4) Annual annuity to survivor:

12 times potential monthly rate for survivor

5) Expected return for survivor:

C(3) times C(4)

6) Annual annuity to retiree:

12 times monthly rate for retiree

7) Expected return for retiree:

C(2) times C(6)

8) Total expected return:

C(5) plus C(7)

3) Survivors tax-free part of annuity, if surviving after death of retiree:

C(4) times D(1)

1) Net cost (total cost less returned premiums, dividends, etc.)

2) Annual annuity allocation:

Portion of net cost in A(1) retirees annual annuity

Net cost

3) Guaranteed under the contract

4) Number of years guaranteed, rounded to whole years:

A(3) divided by A(2)

5) Applicable percentages*

*If your annuity meets the three conditions listed in Zero value of refund feature inInvestment in the Contract, earlier, both percentages are 0. If not, the IRS willcalculate the refund feature percentage.


A(5) times lesser of A(1) or A(3)

B. Investment in the Contract

1) Net cost:

A(1)


A(6)

3) Investment in the contract adjusted for refund feature:

B(1) minus B(2)

Page 12


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ACTUARIAL TABLES

Table I (One Life) applies to all ages. Tables IIIV apply to males ages 35 to 90 and females ages 40 to 95.

AgesMultiples

Table I.Ordinary Life AnnuitiesOne LifeExpected Return Multiples

Male Female

AgesMultiples

Male Female

AgesMultiples

Male Female

6 65.0117

8910

12

131415

64.1

63.262.361.4

1112131415

1617181920

60.459.558.657.756.7

1617181920

2122232425

2122232425

2627282930

3132333435

2627282930

363738

3940

313233

3435

4142434445

3637383940

55.854.953.953.052.1

51.150.249.348.347.4

46.545.644.643.742.8

41.941.040.0

39.138.2

37.336.535.634.733.8

Adjustments to Tables I, II, V, VI and VIA. Payments Made Quarterly, Semiannually, or Annually

Number of whole months from annuity starting date to first payment date

01 2 3 4 5 6 7 8 9 10 11 12

Payments to be made:AnnuallySemiannuallyQuarterly

+.5+.2+.1

+.4+.1

0

+.30

-.1

+.20

+.1-.1

0-.2

0 -.1 -.2 -.3 -.4 -.5

4142

434445

33.032.1

31.230.429.6

4647

484950

5152535455

4647484950

28.727.927.126.325.5

24.724.023.222.421.7

5657585960

5152535455

21.020.319.618.918.2

6162636465

5657585960

17.516.916.215.615.0

6667686970

6162636465

14.413.813.2

12.612.1

717273

7475

666768

6970

11.611.010.510.1

9.6

7677787980

7172737475

9.18.7

8.37.87.5

7677

787980

8182

838485

7.16.76.36.05.7

8687888990

8182838485

5.45.14.84.54.2

9192939495

8687888990

4.03.73.53.33.1

96979899

100

9192939495

2.92.72.52.32.1

101102103104105

96979899

100

1.91.71.5

1.31.2

106107108

109110

101102103

104105

.8

.7

.6

.50

112113114115116

107108109110111

1.0111106

Page 13


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Table II.Ordinary Joint Life and Last Survivor AnnuitiesTwo LivesExpected Return Multiples

Male Female

35 46.240363738

39

414243

44

45.745.344.8

44.4

43.643.142.542.0

41.5

41.841.140.439.8

39.2

Ages

Male 36 37 38 3935 40 41 42 43 44 45 46 47

41 42 43 4440 45 46 47 48 49 50 51 52

40 45 44.0 41.0 38.6

45.745.244.844.3

43.943.5

45.344.844.343.8

43.442.9

44.844.343.843.3

42.942.4

44.443.943.442.9

42.441.9

44.043.542.942.4

41.941.4

43.342.742.141.6

41.040.5

43.042.341.841.2

40.640.1

42.642.041.440.8

40.239.7

42.341.741.140.5

39.939.3

42.041.440.740.1

39.538.9

41424344

46474849

43.643.343.042.6

40.540.039.639.2

38.037.536.936.4

45 50 42.3 38.8 35.9

43.142.742.342.041.7

42.542.141.841.441.1

42.041.641.240.840.5

41.541.040.640.239.9

41.040.540.139.739.3

40.039.639.138.738.2

39.639.138.638.237.7

39.238.738.237.737.2

38.838.237.737.236.8

38.437.837.336.836.3

46 51 42.0 38.4 35.447 52 41.8 38.0 35.0

41.441.1

40.740.4

40.139.8

39.539.2

38.938.6

37.837.5

37.336.9

36.836.4

36.335.9

35.935.4

Male Female

35 41.54036373839

41424344

40.840.239.538.9

Ages

Male 49 50 51 5248 53 54 55 56 57 58 59 60

54 55 56 5753 58 59 60 61 62 63 64 65

40 45 38.3

41424344

46474849

37.737.136.536.0

45 50 35.5

46 51 35.0

47 52 34.54849

5354

50 55

51 5652 575354

5859

55 60

56 6157 625859

6364

60 65

34.033.633.2

32.832.432.031.731.4

31.130.830.530.230.0

41.340.639.939.238.638.0

37.336.836.235.635.1

34.6

34.133.633.132.7

32.331.931.531.230.8

30.530.229.929.629.4

41.040.339.639.038.337.7

37.036.435.835.334.7

34.2

33.733.232.732.3

31.831.431.030.630.3

29.929.629.329.028.8

40.840.139.438.738.037.4

36.736.135.534.934.4

33.8

33.332.832.331.8

31.430.930.530.129.8

29.429.128.828.528.2

40.639.939.238.537.837.1

36.535.835.234.634.0

33.5

32.932.431.931.4

30.930.530.129.729.3

28.928.628.227.927.6

40.439.739.038.337.636.9

36.235.634.934.3

33.1

32.632.031.531.0

30.530.129.629.228.8

28.428.127.727.427.1

33.7

40.339.538.838.137.336.6

36.035.334.734.033.4

32.8

32.231.731.230.6

30.129.729.228.828.3

27.927.627.226.926.5

40.139.338.637.937.136.4

35.735.134.433.833.1

32.5

31.931.430.830.3

29.829.328.828.327.9

27.527.126.726.426.0

40.039.238.437.736.936.2

35.534.834.233.532.9

32.2

31.631.130.529.9

29.428.928.427.927.5

27.126.726.325.925.5

39.839.038.337.536.836.0

35.334.633.933.332.6

32.0

31.430.830.229.6

29.128.628.127.627.1

26.726.225.825.425.1

39.738.938.137.336.635.9

35.134.433.733.032.4

31.7

31.130.529.929.3

28.828.227.727.226.7

26.325.825.425.024.6

39.638.838.037.236.435.7

35.034.233.532.832.2

31.5

30.930.229.629.0

28.527.927.426.926.4

25.925.425.024.624.2

39.538.637.937.136.335.5

34.834.133.332.631.9

31.3

30.630.029.428.8

28.227.627.126.526.0

25.525.124.624.223.8

Page 14


15/81

Table II.Ordinary Joint Life and Last Survivor AnnuitiesTwo LivesExpected Return MultiplesContinued

Male Female

35 40363738

39

414243

44

38.9

Ages

Male 62 63 64 6561 66 67 68 69 70 71 72 73

67 68 69 7066 71 72 73 74 75 76 77 78

40 45

39.238.337.536.7

35.935.1

38.9

41424344

46474849

45 50

4647484950

51

52535455

5657585960

6162636465

6667686970

717273

5152535455

56

57585960

6162636465

6667686970

7172737475

767778

34.633.933.232.531.8

39.438.537.736.9

36.235.4

31.130.429.829.128.5

27.9

27.326.826.225.7

25.224.724.323.823.4

23.022.622.221.921.6

21.321.020.720.420.2

20.019.819.6

34.533.733.032.331.6

30.930.229.528.928.3

27.7

27.126.525.925.4

24.924.423.923.523.0

22.622.221.821.521.1

20.820.520.219.919.7

19.519.219.0

39.338.437.636.8

36.035.3

39.138.237.436.6

35.835.0

39.038.237.336.5

35.734.9

34.433.632.932.131.4

30.730.029.328.728.1

27.4

26.826.225.725.1

24.624.123.623.122.7

22.221.821.421.120.7

20.420.119.819.519.2

19.018.718.5

34.233.532.732.031.3

30.529.829.228.527.8

27.2

26.626.025.424.9

24.323.823.322.822.3

21.921.521.120.720.3

20.019.619.319.018.7

18.518.218.0

34.133.432.631.831.1

30.429.729.028.327.6

27.0

26.425.825.224.6

24.123.523.022.522.0

21.621.120.720.319.9

19.619.218.918.618.3

18.017.817.5

38.137.336.4

35.634.8

34.033.232.531.731.0

30.229.528.828.127.5

26.8

26.225.625.024.4

23.823.322.722.221.7

21.320.820.420.019.6

19.218.818.518.217.9

17.617.317.1

38.037.236.4

35.534.7

33.933.132.431.630.8

30.129.428.728.027.3

26.6

26.025.424.724.1

23.623.022.5

21.421.9

21.020.520.119.619.2

18.818.518.117.817.5

17.216.916.7

38.838.037.136.3

35.534.6

33.833.032.331.530.7

30.029.328.527.827.1

26.5

25.825.224.623.9

23.422.822.221.7

20.720.219.819.318.9

18.518.117.817.417.1

16.816.516.2

21.2

38.837.937.136.2

35.434.6

33.833.032.231.430.6

29.929.128.427.727.0

26.3

25.725.024.423.8

23.222.622.021.5

20.419.919.519.018.6

18.217.817.417.116.7

16.416.115.8

20.9

38.737.937.036.2

35.334.5

33.732.932.131.330.5

29.829.028.327.626.9

26.2

25.524.824.223.6

23.022.421.821.220.7

20.219.719.218.718.3

17.917.517.116.716.4

16.115.815.5

38.737.836.936.1

35.334.4

33.632.832.031.230.4

29.728.928.227.526.7

26.0

25.424.724.023.4

22.822.221.621.020.5

20.019.519.018.518.0

17.617.216.816.416.1

15.715.415.1

38.637.836.936.0

35.234.4

33.532.731.931.130.4

29.628.828.127.426.6

25.9

24.623.923.3

22.622.021.420.920.3

19.819.218.718.217.8

17.316.916.516.115.8

15.415.114.8

38.637.736.936.0

35.234.3

33.532.731.931.130.3

29.528.728.027.326.5

25.8

25.124.423.823.1

22.521.921.320.720.1

19.619.018.518.017.5

17.116.716.215.815.5

15.114.814.4

25.2

Page 15


16/81


Male Female

35 40363738

39

414243

44

38.4

Ages

Male 75 76 77 7874 79 80 81 82 83 84 85

80 81 82 8379 84 85 86 87 88 89 90

40 45

38.5 38.4

41424344

46474849

45 50

4647484950

51

52535455

5657585960

6162636465

6667686970

717273

5152535455

56

57585960

6162636465

6667686970

7172737475

767778

38.6 38.5 38.5 38.4 38.4 38.4 38.4 38.3 38.3

7475

7980

76777879

80

81828384

85

8182838485

8687888990

37.736.836.0

35.134.3

33.432.631.831.030.2

29.428.727.927.226.4

25.7

25.024.323.623.0

22.321.721.120.519.9

19.418.818.317.817.3

16.916.416.015.615.2

14.814.514.113.813.5

13.213.012.712.5

12.3

12.111.911.711.611.4

37.636.835.9

35.134.2

33.432.631.830.930.1

29.428.627.827.126.3

25.6

24.924.223.522.9

22.221.621.020.419.8

19.218.718.117.617.1

16.616.215.715.314.9

14.514.213.813.513.2

12.912.612.412.2

11.9

11.711.511.411.211.0

37.636.735.9

35.034.2

33.332.531.730.930.1

29.328.527.827.026.3

25.5

24.824.123.422.8

22.121.520.820.219.6

19.118.518.017.416.9

16.416.015.515.114.7

14.313.913.613.212.9

12.612.312.111.8

11.6

11.411.211.010.810.7

37.636.735.9

35.034.1

33.332.531.730.830.0

29.228.527.726.926.2

25.5

24.724.023.322.7

22.021.320.720.119.5

18.918.317.817.316.7

16.315.815.314.914.5

14.113.713.313.012.6

12.312.111.811.5

11.3

11.110.810.710.510.3

37.636.735.8

35.034.1

33.332.431.630.830.0

29.228.427.626.926.1

25.4

24.723.923.222.6

21.921.220.620.019.4

18.818.217.617.116.6

16.115.615.114.714.3

13.813.513.112.712.4

12.111.811.511.2

11.0

10.710.510.310.010.0

37.536.735.8

34.934.1

33.232.431.630.829.9

29.228.427.626.826.1

25.3

24.623.923.222.5

21.821.120.519.919.3

18.718.117.517.016.4

15.915.415.014.514.1

13.613.212.912.512.2

11.811.511.211.0

10.7

10.510.210.0

9.89.6

37.536.635.8

34.934.1

33.232.431.530.729.9

29.128.327.526.826.0

25.3

24.523.823.122.4

21.721.120.419.819.1

18.518.017.416.816.3

15.815.314.814.313.9

13.513.012.712.311.9

11.611.311.010.7

10.4

10.210.0

9.79.59.3

37.536.635.8

34.934.0

33.232.331.530.729.9

29.128.327.526.726.0

25.2

24.523.723.022.3

21.621.020.319.719.0

18.417.817.316.716.2

15.615.114.614.213.7

13.312.912.512.111.7

11.411.110.710.5

10.2

9.99.79.59.39.1

37.536.635.7

34.934.0

33.232.331.530.729.8

29.028.227.526.725.9

25.2

24.423.723.022.3

21.620.920.219.619.0

18.317.717.216.616.0

15.515.014.514.013.6

13.112.712.311.911.5

11.210.810.510.2

10.0

9.79.49.29.08.8

37.536.635.7

34.834.0

33.132.331.530.629.8

29.028.227.426.625.9

25.1

24.423.622.922.2

21.520.820.219.518.9

18.317.717.116.515.9

15.414.914.413.913.4

13.012.512.111.711.4

11.010.710.310.0

9.7

9.59.29.08.78.5

37.536.635.7

34.834.0

37.436.635.7

34.834.0

33.132.331.430.629.8

29.028.227.426.625.8

25.1

24.323.622.922.2

21.520.820.119.418.8

33.132.331.430.629.8

28.928.127.426.625.8

25.0

24.323.522.822.1

21.420.720.019.418.7

18.217.617.016.415.8

15.314.814.313.813.3

12.812.412.011.611.2

10.810.510.1

9.8

9.5

9.39.08.78.58.3

18.117.516.916.315.8

15.214.714.213.713.2

12.712.311.811.411.0

10.710.310.0

9.6

9.3

9.18.88.58.38.1

Page 16


17/81


Male Female

35 403637

3839

4142

4344

Ages

Male 87 88 89 9086

92 93 94 9591

40 45

38.3

41424344

46474849

45 50

4647484950

51

52535455

5657585960

61626364

656667686970

717273

5152535455

56

57585960

6162636465

66676869

707172737475

767778

38.3 38.3 38.3 38.3

7475

7980

767778

7980

818283

8485

81828384

86878889

8687888990

9192939495

37.436.5

35.734.833.933.132.231.430.629.7

28.928.127.326.525.8

25.0

24.323.522.822.1

21.420.720.019.318.7

18.117.416.816.2

15.715.114.614.113.613.1

12.612.111.711.310.9

10.510.2

9.8

9.59.2

8.98.68.38.1

7.77.57.37.17.0

37.436.5

35.734.833.933.132.231.430.529.7

28.928.127.326.525.7

25.0

24.223.522.722.0

37.436.5

35.634.833.933.132.231.430.529.7

28.928.127.326.525.7

24.9

23.422.7

37.436.5

35.634.833.933.032.231.430.529.7

28.928.127.326.525.7

23.4

37.436.5

35.634.833.933.032.231.330.529.7

28.928.027.226.525.7

23.424.2

22.0

24.2

22.0

24.1

21.9

24.9

22.7

24.9

22.7

21.320.619.919.318.6

18.017.416.816.2

15.615.014.514.013.513.0

12.512.011.611.210.8

10.410.0

9.7

9.39.0

8.78.48.27.9

7.57.37.16.96.8

21.320.619.919.218.6

21.320.619.919.218.5

21.220.519.819.218.5

17.917.316.716.1

15.515.014.413.913.412.9

12.411.911.511.110.7

10.39.99.5

9.28.9

8.68.38.07.8

7.37.16.96.76.6

17.917.316.716.1

17.917.216.616.0

15.514.914.413.813.312.8

15.414.814.313.813.212.7

12.311.811.411.010.5

10.29.89.4

9.18.7

8.48.17.97.6

7.16.96.76.56.4

12.211.811.310.910.5

10.19.79.3

8.98.6

8.38.07.77.5

7.06.86.66.46.2

Page 17


18/81

Table III.Percent Value of Refund Feature

Male Female

35 40

36

37

3839

41

42

4344

Ages

2

years

3

years

4

years

5

years

1

year

6

years

7

years

8

years

9

years

10

years

11

years

12

years

40 45

41

42

43

44

46

47

48

49

45 50

46

47

48

49

50

51

5253

54

55

56

57

58

59

60

61

62

63

64

65

6667

68

69

70

71

72

73

51

52

53

54

55

56

5758

59

60

61

62

63

64

65

66

67

68

69

70

7172

73

74

75

76

77

78

74

75

79

80

76

77

78

79

80

81

82

83

84

85

81

82

83

84

85

86

87

88

89

90

1

Duration of guaranteed amount

111

11111

11111

12222

22233

3344

4

45556

86

87

88

89

90

91

92

93

94

95

67788

1

1

1

111

1111

111

112

222

22

3

333

3

44

45556

6778

8

99

101111

1213141516

2

1

1

111

1111

222

222

433

33

4

554

4

66

67788

9101111

12

1314151617

1819212223

11

111

1

2

2

2

111

1122

223

333

544

44

5

766

6

78

99

101111

12131415

16

1718192122

2425272830

11

111

11

1

3

3

2

112

2222

333

444

665

55

7

988

7

910

1112121314

15161719

20

2123242627

2931323436

11

111

11

1

3

3

3

222

2223

444

455

776

66

8

11109

9

1112

1314151617

18202122

24

2527283032

3436384042

21

111

11

1

4

4

3

222

3333

455

566

988

77

9

131211

10

1314

1516181920

21232426

27

2931333436

3840424547

22

221

11

1

5

4

4

233

3334

556

677

10109

88

11

141413

12

1617

1819202223

24262829

31

3335373841

4345474951

22

222

21

1

5

5

5

333

3444

667

788

121110

910

13

161514

13

1819

2021232426

27293133

34

3638404244

4749515355

32

222

22

2 2

22

223

33334

44555

6

6778

899

1011

1212131415

1617182021

2224252729

30323436

38

4042444648

5052555759

2

22

233

33444

45556

6

7788

910101112

1314151617

1819212223

2526283031

33353739

41

4345474951

5456586062

2

23

333

34445

55667

7

8899

1011121213

1415161719

2021232426

2729303234

36384042

44

4648505255

5759616365

2

33

334

44455

56677

8

89

1010

1112131415

1617181920

2223252628

2931333537

39414345

47

4951535557

5961636567

13

years

Percent Percent PercentPercentPercentPercentPercentPercentPercentPercent Percent Percent Percent

Page 18


19/81

Table III.Percent Value of Refund FeatureContinued

Male Female

35 40

36

37

3839

41

42

4344

Ages

15

years

16

years

17

years

18

years

14

years

19

years

20

years

21

years

22

years

23

years

24

years

25

years

40 45

41

42

43

44

46

47

48

49

45 50

46

47

48

49

50

51

5253

54

55

56

57

58

59

60

61

62

63

64

65

6667

68

69

70

71

72

73

51

52

53

54

55

56

5758

59

60

61

62

63

64

65

66

67

68

69

70

7172

73

74

75

76

77

78

3

74

75

79

80

76

77

78

79

80

81

82

83

84

85

81

82

83

84

85

86

87

88

89

90

Duration of guaranteed amount

3

86

87

88

89

90

91

92

93

94

95

3 3 4 4 4 5 5 5 6 6 7

Percent Percent PercentPercentPercentPercentPercentPercentPercentPercent Percent Percent

3

344

45556

67788

9

9101111

1213141516

1718202122

2425272830

3234353739

41434548

50

5254565860

6264666870

33

444

55566

77889

10

10111213

1314151618

1920212324

2627293032

3436384042

44464850

52

5456586062

6466687072

Percent

44

445

55667

7889

10

10

11121314

1516171819

2022232426

2829313334

3638404244

46485053

55

5759616365

6668707273

44

455

66677

899

1011

11

12131415

1617181920

2223252628

2931333537

3941434547

49515355

57

5961636567

6870727375

44

556

66778

99

101111

12

13141516

1718192122

2325262830

3133353739

4143454749

51535557

59

6163656768

7072737576

55

566

77889

910111112

13

14151617

1820212224

2527283032

3335373941

4345474951

53555759

61

6365666870

7273757677

55

667

78899

1011121213

14

15161718

2021222425

2728303233

3537394143

4547495153

55575961

63

6566687071

7374767779

56

677

8899

10

1112121314

15

16171820

2122242527

2830323335

3739414345

4749515355

57596163

64

6668707173

74767778

66

778

899

1011

1212131415

16

17192021

2224252728

3032333537

3941434547

4951535557

59616264

66

6869717374

757778

67

788

99

101112

1213141516

17

18202122

2425272830

3233353739

4143454749

5153555758

60626466

67

6971727475

7678

77

889

910111212

1314151617

18

20212224

2527283032

3335373941

4345474850

5254565860

62646567

69

7072737576

77

78

899

1011121213

1415161718

20

21222425

2728303133

3537394142

4446485052

5456586062

63656768

70

7273747677

Page 19


20/81

Table IV.Temporary Life Annuities1One LifeExpected Return Multiples

Male Female

0 to 8 0 to 13

Ages

2 3 4 51 6 7 8 9 10

1.0

Temporary periodmaximum duration of annuity

2.0 3.0 4.0 5.0 6.0 7.0 8.0 8.9 9.9

Years

91011

121314151617181920212223242526

27282930313233343536373839404142434445464748495051525354555657

141516

171819202122232425262728293031

32333435363738394041424344454647484950515253545556575859606162

1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 8.9 9.91.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 8.9 9.91.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 8.9 9.9

1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 8.9 9.91.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 8.9 9.91.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 8.9 9.91.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 8.9 9.91.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 8.9 9.91.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 8.9 9.91.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 8.9 9.91.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 8.9 9.91.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 8.9 9.91.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 8.9 9.91.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 8.9 9.91.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 8.9 9.91.0 2.0 3.0 4.0 5.0 6.0 7.0 7.9 8.9 9.91.0 2.0 3.0 4.0 5.0 6.0 7.0 7.9 8.9 9.91.0 2.0 3.0 4.0 5.0 6.0 7.0 7.9 8.9 9.9

1.0 2.0 3.0 4.0 5.0 6.0 7.0 7.9 8.9 9.91.0 2.0 3.0 4.0 5.0 6.0 7.0 7.9 8.9 9.91.0 2.0 3.0 4.0 5.0 6.0 6.9 7.9 8.9 9.91.0 2.0 3.0 4.0 5.0 6.0 6.9 7.9 8.9 9.91.0 2.0 3.0 4.0 5.0 6.0 6.9 7.9 8.9 9.91.0 2.0 3.0 4.0 5.0 6.0 6.9 7.9 8.9 9.91.0 2.0 3.0 4.0 5.0 6.0 6.9 7.9 8.9 9.91.0 2.0 3.0 4.0 5.0 5.9 6.9 7.9 8.9 9.81.0 2.0 3.0 4.0 5.0 5.9 6.9 7.9 8.9 9.81.0 2.0 3.0 4.0 5.0 5.9 6.9 7.9 8.9 9.81.0 2.0 3.0 4.0 5.0 5.9 6.9 7.9 8.8 9.81.0 2.0 3.0 4.0 5.0 5.9 6.9 7.9 8.8 9.81.0 2.0 3.0 4.0 4.9 5.9 6.9 7.9 8.8 9.81.0 2.0 3.0 4.0 4.9 5.9 6.9 7.8 8.8 9.71.0 2.0 3.0 4.0 4.9 5.9 6.9 7.8 8.8 9.71.0 2.0 3.0 4.0 4.9 5.9 6.9 7.8 8.8 9.71.0 2.0 3.0 4.0 4.9 5.9 6.9 7.8 8.8 9.71.0 2.0 3.0 4.0 4.9 5.9 6.8 7.8 8.7 9.71.0 2.0 3.0 3.9 4.9 5.9 6.8 7.8 8.7 9.61.0 2.0 3.0 3.9 4.9 5.9 6.8 7.8 8.7 9.61.0 2.0 3.0 3.9 4.9 5.9 6.8 7.7 8.7 9.61.0 2.0 3.0 3.9 4.9 5.9 6.8 7.7 8.6 9.51.0 2.0 3.0 3.9 4.9 5.8 6.8 7.7 8.6 9.51.0 2.0 3.0 3.9 4.9 5.8 6.8 7.7 8.6 9.51.0 2.0 3.0 3.9 4.9 5.8 6.7 7.7 8.6 9.41.0 2.0 3.0 3.9 4.9 5.8 6.7 7.6 8.5 9.41.0 2.0 2.9 3.9 4.9 5.8 6.7 7.6 8.5 9.31.0 2.0 2.9 3.9 4.8 5.8 6.7 7.6 8.4 9.31.0 2.0 2.9 3.9 4.8 5.8 6.7 7.5 8.4 9.21.0 2.0 2.9 3.9 4.8 5.7 6.6 7.5 8.4 9.21.0 2.0 2.9 3.9 4.8 5.7 6.6 7.5 8.3 9.1

1See footnote at end of table.

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Table IV.Temporary Life Annuities1One LifeExpected Return MultiplesContinued

Male Female

Ages

2 3 4 51 6 7 8 9 10

1.0


2.0 2.9 3.9 4.8 5.7 6.6 7.4 8.3 9.1

Years

1.0 2.01.0 2.01.0 2.0

1.0 2.01.0 2.01.0 1.91.01.01.01.01.01.01.01.01.01.01.01.0

1.01.01.01.01.01.0

.9

.9


58596061

626364656667686970717273747576

77787980818283848586

63646566

676869707172737475767778798081

82838485868788899091

.9

.9

1.91.91.91.9

1.81.81.81.81.81.81.81.8

1.91.91.91.91.91.91.91.9

1.91.9

2.8

2.7

2.6

2.5

2.92.92.9

2.92.92.92.92.92.9

2.82.82.82.82.82.8

2.7

2.72.72.7

2.62.62.6

2.52.5

3.8

3.7

3.6

3.5

3.4

3.3

3.2

3.13.1

3.2

3.3

3.9

3.8

3.83.83.83.83.8

3.73.73.73.7

3.63.6

3.5

3.5

3.43.4

4.84.84.7

4.6

4.5

4.4

4.3

4.2

4.74.74.7

4.64.64.6

4.54.5

4.4

4.3

4.24.14.14.03.93.93.83.73.63.6

5.7 6.5 7.4 8.2 9.05.6 6.5 7.3 8.1 8.95.6 6.5 7.3 8.1 8.8

5.6 6.4 7.2 8.0 8.85.6 6.4 7.2 7.9 8.75.5 6.3 7.1 7.9 8.65.5 6.3 7.1 7.8 8.55.4 6.2 7.0 7.7 8.45.4 6.2 6.9 7.6 8.35.4 6.1 6.8 7.5 8.25.3 6.1 6.8 7.4 8.05.3 6.0 6.7 7.3 7.95.2 5.9 6.5 7.2 7.85.2 5.8 6.5 7.1 7.65.1 5.8 6.4 7.0 7.55.0 5.7 6.3 6.8 7.35.0 5.6 6.2 6.7 7.14.9 5.5 6.1 6.5 7.0

4.8 5.4 5.9 6.4 6.84.7 5.3 5.8 6.2 6.64.7 5.2 5.7 6.1 6.44.6 5.1 5.5 5.9 6.24.5 5.0 5.4 5.7 6.04.4 4.8 5.2 5.6 5.84.3 4.7 5.1 5.4 5.64.2 4.6 4.9 5.2 5.44.1 4.5 4.8 5.0 5.24.0 4.3 4.6 4.8 5.0

Male Female

Ages

12 13 14 1511 16 17 18 19 20

10.9


11.9 12.9 13.9 14.9 15.8 16.8 17.8 18.8 19.7

Years

0 to 8 0 to 139

101112131415161718192021

14151617181920212223242526

10.9 11.9 12.9 13.9 14.9 15.8 16.8 17.8 18.8 19.710.9 11.9 12.9 13.9 14.9 15.8 16.8 17.8 18.8 19.710.9 11.9 12.9 13.9 14.9 15.8 16.8 17.8 18.8 19.710.9 11.9 12.9 13.9 14.9 15.8 16.8 17.8 18.8 19.710.9 11.9 12.9 13.9 14.9 15.8 16.8 17.8 18.8 19.710.9 11.9 12.9 13.9 14.9 15.8 16.8 17.8 18.8 19.710.9 11.9 12.9 13.9 14.9 15.8 16.8 17.8 18.7 19.710.9 11.9 12.9 13.9 14.8 15.8 16.8 17.8 19.710.9 11.9 12.9 13.9 15.8 16.8 17.8 19.710.9 11.9 12.9 13.9 15.8 16.8 17.8 19.710.9 11.9 12.9 13.9 15.8 16.8 17.7 19.710.9 11.9 12.9 13.9 15.8 16.8 17.7 19.710.9 11.9 12.9 13.8 14.8 15.8 16.8 17.7 19.6

14.814.814.814.8

18.718.718.718.718.718.7

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Male Female

Ages

12 13 14 1511 16 17 18 19 20

10.9


11.9 12.9 13.8 14.8 15.8 16.7 17.7 18.7 19.6

Years

10.9 11.9 12.9 15.810.9 11.9 12.9 15.810.9 11.9 12.8

10.9 11.910.9 11.910.9 11.8 14.710.910.910.8

12.713.7

11.7

14.6

22232425

262728293031323334353637383940

41424344454647484950515253545556575859606162636465666768697071

27282930

313233343536373839404142434445

46474849505152535455565758596061626364656667686970717273747576

13.6 14.512.6 13.6

10.7 13.5 14.411.6 13.5

12.5 13.5

13.4 14.310.6 13.411.5 12.4 13.3 14.2

13.3 14.110.5 11.4 12.3 13.2 14.1

13.2 14.012.2 13.1 13.9

10.4 11.3 13.0 13.812.1 12.9 13.8

10.3 11.2 12.0 12.9 13.711.1 12.8 13.6

10.2 11.9 12.7 13.511.0 11.8 12.6 13.4

10.1 10.9 11.7 12.5 13.210.1 11.6 12.4 13.110.0 10.8 11.5 12.3 13.0

9.9 10.7 11.4 12.2 12.89.8 10.6 11.3 12.0 12.79.8 10.5 11.2 11.9 12.59.7 10.4 11.1 11.7 12.49.6 10.3 11.0 11.6 12.29.5 10.2 10.8 11.4 12.09.4 10.0 10.7 11.3 11.89.3 10.5 11.1 11.69.1 10.3 10.9 11.49.0 10.2 10.7 11.28.9 10.0 10.5 10.98.7 10.3 10.78.6 10.0 10.48.4 9.8 10.28.3 9.6 9.9

10.2

10.3

10.4

10.510.5

10.610.6

10.710.7

10.7

10.810.810.810.810.810.8

10.9

11.1

11.3

11.411.4

11.5

11.6

11.611.6

11.711.711.7

11.811.811.811.811.811.8

9.99.89.69.59.39.18.98.7

9.89.69.49.2

12.812.812.812.812.812.8

12.712.712.712.7

12.612.6

12.512.5

12.4

12.3

12.2

12.0

14.814.814.8

14.814.8

14.714.714.7

14.614.614.6

14.5

14.414.4

14.3

13.613.6

13.713.713.7

13.813.813.8

13.813.813.813.8

15.7

15.715.715.715.715.615.615.615.615.515.515.415.415.315.315.2

15.215.115.115.014.914.814.714.714.614.514.314.214.114.013.813.713.513.313.213.012.812.512.312.111.911.611.311.110.810.510.2

16.716.716.7

16.716.716.616.616.616.516.516.516.416.416.316.316.216.216.1

16.116.015.915.815.715.715.615.415.315.215.114.914.814.614.514.314.113.913.713.513.313.112.812.512.312.011.711.411.110.810.4

17.717.717.7

17.617.617.617.617.517.517.417.417.417.317.217.217.117.117.0

16.916.816.716.716.616.516.316.216.116.015.815.615.515.315.114.914.714.514.314.013.813.513.213.012.712.412.011.711.411.010.7

18.718.618.6

18.618.618.518.518.418.418.418.318.318.218.118.118.017.917.8

17.817.717.617.517.417.217.117.016.816.716.516.316.115.915.715.515.315.014.814.514.214.013.713.313.012.712.312.011.611.210.9

19.619.619.6

19.519.519.519.419.419.319.319.219.219.119.018.918.918.818.7

18.618.518.418.318.118.017.817.717.517.417.217.016.816.516.316.115.815.515.315.014.714.314.013.713.313.012.612.211.811.411.0

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1

See footnote at end of table.

Male Female

Ages

12 13 14 1511 16 17 18 19 20

8.1


8.6 8.9 9.3 9.6 9.9 10.1 10.3 10.5 10.6

Years

72737475

7677787980818283848586

77787980

8182838485868788899091

7.97.77.6

7.47.16.96.76.56.36.05.85.65.35.1

8.38.17.9

7.77.57.27.06.76.56.26.05.75.55.2

8.78.58.2

8.07.77.47.26.96.66.46.15.85.55.3

9.08.88.5

8.27.97.67.37.16.86.56.25.95.65.3

9.39.08.7

8.48.17.87.57.26.96.56.25.95.6

9.69.28.9

8.68.37.97.67.36.96.66.36.0

9.89.49.1

8.78.48.07.77.37.06.76.3

9.99.69.2

8.88.58.17.77.47.06.7

10.19.79.3

8.98.58.27.87.47.1

10.29.89.4

9.08.68.27.87.4

Male Female

Ages

22 23 24 2521 26 27 28 29 30

20.7


21.7 22.7 23.6 24.6 25.6 26.5 27.5 28.4 29.4

Years

0 to 8 0 to 139

1011121314151617181920

212223242526272829303132333435

141516171819202122232425

262728293031323334353637383940

20.7 21.7 22.720.7 21.7 22.720.7 21.720.7 21.720.7 21.720.7 21.720.7 21.620.720.720.720.620.6

20.620.620.620.520.520.520.420.420.320.320.220.220.120.020.0

21.621.621.621.621.6

21.521.521.521.521.421.421.321.321.221.221.121.121.020.920.8

22.622.622.622.622.622.622.622.622.522.5

22.522.522.422.422.422.322.322.222.122.122.021.921.921.821.7

23.623.623.623.623.623.623.623.623.523.523.523.5

23.423.423.423.323.323.223.223.123.023.022.922.822.722.622.5

24.6 25.6 26.5 27.5 28.4 29.424.6 25.5 26.5 27.5 28.4 29.424.6 26.5 27.4 28.4 29.324.6 26.5 27.4 28.4 29.324.6 26.5 27.4 28.4 29.324.5 26.4 27.4 28.3 29.3

25.525.525.525.525.525.5

24.524.524.524.524.424.4

24.424.324.324.224.224.124.124.023.923.823.823.723.623.523.3

25.425.425.425.3

25.325.325.225.225.125.025.024.924.824.724.624.524.424.324.2

26.426.426.426.326.326.3

26.226.226.126.126.025.925.825.825.725.625.525.425.225.125.0

27.427.327.327.327.227.2

27.127.127.027.026.926.826.726.626.526.426.326.226.025.925.7

28.328.328.228.228.128.1

28.028.027.927.827.827.727.627.527.427.227.127.026.826.726.5

29.229.229.229.129.129.0

28.928.928.828.728.628.528.428.328.228.127.927.827.627.427.2

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1The multiples in this table are not applicable to annuities for a term certain; for such cases see sec. 1.72-5(c) of the IncomeTax Regulations.

Male Female

Ages

22 23 24 2521 26 27 28 29 30

19.9


20.7 21.6 22.4 23.2 24.0 24.8 25.6 26.3 27.0

Years

36373839

404142434445464748495051525354

5

us internal revenue service: p939

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