Determining the Actuarial Present Value of Certain Additional Benefits Under Treas. Reg. Section 1.401a9–6, Q&A–12

Research Projects – Life Insurance


The Required Minimum Distribution (“RMD”) Working Group of the Society of Actuaries’ Taxation Section has completed new research identifying considerations for actuaries and annuity insurers in determining the actuarial present value of additional benefits for computing required minimum distributions under a deferred annuity contract. The paper discusses types of benefits covered under Treasury Regulation Section 1.401 (a)(9)–6, Q&A–12 as well as possible assumptions and methods for calculating the actuarial present values of additional benefits provided under an annuity contract. The appendices show examples for a variety of additional benefit types. EXCEL spreadsheets for the appendices are also provided. The discussion presented in the paper and the examples are provided for educational purposes and are not to be viewed as an authoritative interpretation of Q&A–12.

Materials

RMD Working Group Paper

Appendix A Spreadsheet

Appendix B Example 1 Spreadsheet

Appendix B Example 2 Spreadsheet

Appendix C Spreadsheet

Appendix D Spreadsheet

Appendix E Spreadsheet

Appendix F Spreadsheet

Appendix G Spreadsheet

Appendix H Spreadsheet

Appendix I Spreadsheet

Appendix J Spreadsheet

Thank You

RMD Working Group

  • Doug Hertz, Chair and Peer Reviewer
  • Tim Bennett
  • Cecile Butler
  • John Fenton
  • Christine Fiarito
  • Paul Fischer
  • Mark Griffin
  • Lisa Kukinski
  • Diane Lloyd
  • Joseph F. McKeever, III
  • Bryan Pinsky
  • Steve Putterman
  • Sue Sell

Questions Or Comments?

If you have comments or questions, please send an email to research@soa.org.