Appendix G: An Overview

The following rates are used in computing the "cost" of pure life insurance protection that is taxable to the employee under: qualified pension and profit sharing plans ( Q 4094) split-dollar plans ( Q 4018); and tax-sheltered annuities ( Q 4057).¹

For these purposes, the rate at insured's attained age is generally applied to the excess of the amount payable at death over the cash value of the policy at the end of the year.

Table 2001 can generally be used starting in 2001. P.S. 58 rates and other rates derived from Table 38 could generally be used in years prior to 2002. However, split dollar arrangements entered into before January 28, 2002, in which the contractual arrangement between the employer and the employee provides that P.S. 58 rates will be used may continue to use P.S. 58 rates. In 2001, either Table 2001 or the P.S. 58/Table 38 derived rates could generally be used.

See Q 246for Table I, Uniform Premiums for $1,000 of Group-Term Life Insurance Protection and application of the rates.