Appendix A Annuity Tables

<div class="Section1"> <p class="HA-P" style="margin-bottom: 0.3pt;text-align: left">Gender based Tables I, II, and III, and Unisex Table V for the taxing of annuities, appear on the following pages. (The IRS has provided a simplified method of taxing annuity payments from qualified plans and tax sheltered annuities, see Q 613.</p> <p><span class="FootnoteReference-H" style="vertical-align: super"><span style="font-size: smaller">^{<a href="#_ftn2" name="_ftnref2"></a>}</span></span></p> <p>Treasury regulations extend some of the Tables to higher and lower ages, but the partial Tables are adequate for all practical purposes. The multiples in Tables I, II, and V need not be adjusted for monthly payments. For quarterly, semi-annual or annual payments, they must be adjusted according to the Frequency of Payment Adjustment Table, below.</p> <p>ALL TABLES ARE ENTERED WITH AGE OF ANNUITANT AT BIRTHDAY NEAREST ANNUITY STARTING DATE.</p> <div align="center"> <table class="TableNormal-T" style="width: 90%;border-collapse: separate;margin-left: 0pt" cellspacing="1"> <tbody> <tr class="TableNormal-R" style="height: 18.9pt"> <td class="TableNormal-C" style="width: 446.15pt;padding: 0.75pt" colspan="13"> <p class="HD-P" style="margin-bottom: 0.15pt;margin-top: 0.15pt"><span class="HD-H"><span style="font-family: Perpetua Std;font-weight: normal">Frequency of Payment Adjustment Table</span></span></p> </td> </tr> <tr class="TableNormal-R" style="height: 0px"> <td class="TableNormal-C" style="width: 184.3pt;vertical-align: bottom;padding: 0.75pt"> <p class="Normal-P"><span class="Normal-H">If the number of whole months from the annuity starting date to the first payment date is</span></p> </td> <td class="TableNormal-C" style="width: 0pt;vertical-align: bottom;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">0-1</span></p> </td> <td class="TableNormal-C" style="width: 0pt;vertical-align: bottom;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">2</span></p> </td> <td class="TableNormal-C" style="width: 0pt;vertical-align: bottom;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">3</span></p> </td> <td class="TableNormal-C" style="width: 0pt;vertical-align: bottom;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">4</span></p> </td> <td class="TableNormal-C" style="width: 0pt;vertical-align: bottom;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">5</span></p> </td> <td class="TableNormal-C" style="width: 17.8pt;vertical-align: bottom;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">6</span></p> </td> <td class="TableNormal-C" style="width: 16pt;vertical-align: bottom;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">7</span></p> </td> <td class="TableNormal-C" style="width: 23.45pt;vertical-align: bottom;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">8</span></p> </td> <td class="TableNormal-C" style="width: 20.85pt;vertical-align: bottom;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">9</span></p> </td> <td class="TableNormal-C" style="width: 20.3pt;vertical-align: bottom;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">10</span></p> </td> <td class="TableNormal-C" style="width: 20pt;vertical-align: bottom;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">11</span></p> </td> <td class="TableNormal-C" style="width: 19.2pt;vertical-align: bottom;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">12</span></p> </td> </tr> <tr class="TableNormal-R" style="height: 0px"> <td class="TableNormal-C" style="width: 184.3pt;vertical-align: bottom;padding: 0.75pt"> <p class="Normal-P"><span class="Normal-H">And payments under the contract are to be made:</span></p> </td> <td class="TableNormal-C" style="width: 0pt;vertical-align: bottom;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 0pt;vertical-align: bottom;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 0pt;vertical-align: bottom;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 0pt;vertical-align: bottom;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 0pt;vertical-align: bottom;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 17.8pt;vertical-align: bottom;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 16pt;vertical-align: bottom;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 23.45pt;vertical-align: bottom;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 20.85pt;vertical-align: bottom;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 20.3pt;vertical-align: bottom;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 20pt;vertical-align: bottom;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 19.2pt;vertical-align: bottom;padding: 0.75pt"></td> </tr> <tr class="TableNormal-R" style="height: 0px"> <td class="TableNormal-C" style="width: 184.3pt;padding: 0.75pt"> <p class="Normal-P"><span class="Normal-H">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annually</span></p> </td> <td class="TableNormal-C" style="width: 0pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">+ .5</span></p> </td> <td class="TableNormal-C" style="width: 0pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">+ .4</span></p> </td> <td class="TableNormal-C" style="width: 0pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">+ .3</span></p> </td> <td class="TableNormal-C" style="width: 0pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">+ .2</span></p> </td> <td class="TableNormal-C" style="width: 0pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">+ .1</span></p> </td> <td class="TableNormal-C" style="width: 17.8pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">0</span></p> </td> <td class="TableNormal-C" style="width: 16pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">0</span></p> </td> <td class="TableNormal-C" style="width: 23.45pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">– .1</span></p> </td> <td class="TableNormal-C" style="width: 20.85pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">– .2</span></p> </td> <td class="TableNormal-C" style="width: 20.3pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">– .3</span></p> </td> <td class="TableNormal-C" style="width: 20pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">– .4</span></p> </td> <td class="TableNormal-C" style="width: 19.2pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">– .5</span></p> </td> </tr> <tr class="TableNormal-R" style="height: 0px"> <td class="TableNormal-C" style="width: 184.3pt;padding: 0.75pt"> <p class="Normal-P"><span class="Normal-H">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Semiannually</span></p> </td> <td class="TableNormal-C" style="width: 0pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">+ .2</span></p> </td> <td class="TableNormal-C" style="width: 0pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">+ .1</span></p> </td> <td class="TableNormal-C" style="width: 0pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">0</span></p> </td> <td class="TableNormal-C" style="width: 0pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">0</span></p> </td> <td class="TableNormal-C" style="width: 0pt;padding: 0.75pt"> <p class="Normal-P"><span class="Normal-H">– .1</span></p> </td> <td class="TableNormal-C" style="width: 17.8pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">– .2</span></p> </td> <td class="TableNormal-C" style="width: 16pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">….</span></p> </td> <td class="TableNormal-C" style="width: 23.45pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">….</span></p> </td> <td class="TableNormal-C" style="width: 20.85pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">….</span></p> </td> <td class="TableNormal-C" style="width: 20.3pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">….</span></p> </td> <td class="TableNormal-C" style="width: 20pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">….</span></p> </td> <td class="TableNormal-C" style="width: 19.2pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">….</span></p> </td> </tr> <tr class="TableNormal-R" style="height: 0px"> <td class="TableNormal-C" style="width: 184.3pt;padding: 0.75pt"> <p class="Normal-P"><span class="Normal-H">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quarterly</span></p> </td> <td class="TableNormal-C" style="width: 0pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">+ .1</span></p> </td> <td class="TableNormal-C" style="width: 0pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">0</span></p> </td> <td class="TableNormal-C" style="width: 0pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">– .1</span></p> </td> <td class="TableNormal-C" style="width: 0pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">….</span></p> </td> <td class="TableNormal-C" style="width: 0pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">….</span></p> </td> <td class="TableNormal-C" style="width: 17.8pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">….</span></p> </td> <td class="TableNormal-C" style="width: 16pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">….</span></p> </td> <td class="TableNormal-C" style="width: 23.45pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">….</span></p> </td> <td class="TableNormal-C" style="width: 20.85pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">….</span></p> </td> <td class="TableNormal-C" style="width: 20.3pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">….</span></p> </td> <td class="TableNormal-C" style="width: 20pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">….</span></p> </td> <td class="TableNormal-C" style="width: 19.2pt;padding: 0.75pt"> <p class="Normal-P" style="text-align: center"><span class="Normal-H">….</span></p> </td> </tr> <tr class="TableNormal-R" style="height: 0px"> <td class="TableNormal-C" style="width: 184.3pt;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 0pt;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 0pt;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 0pt;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 0pt;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 0pt;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 17.8pt;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 16pt;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 23.45pt;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 20.85pt;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 20.3pt;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 20pt;padding: 0.75pt"></td> <td class="TableNormal-C" style="width: 19.2pt;padding: 0.75pt"></td> </tr> <tr class="TableNormal-R" style="height: 34.05pt"> <td class="TableNormal-C" style="width: 446.15pt;padding: 0.75pt" colspan="13"> <p class="PO-P" style="margin-bottom: 0.3pt"><span class="PO-H"><span style="font-style: italic">Example.</span> Ed Black bought an annuity contract on January 1 which provides him with an <span style="font-style: italic">annual</span> payment of $4,000 payable on December 31st of each year. His age on birthday nearest the annuity starting date (January 1) is sixty-six. The multiple from Table V for male age 66, is 19.2. This multiple must be adjusted for annual payment by subtracting .5 (19.2 – .5 = 18.7). Thus, his total expected return is $74,800 (18.7 x $4,000). See Treas. Reg. § 1.72-5(a)(2).</span></p> </td> </tr> <tr> <td style="width: 193.95pt;margin: 0px;padding: 0px"></td> <td style="width: 20.15pt;margin: 0px;padding: 0px"></td> <td style="width: 20.15pt;margin: 0px;padding: 0px"></td> <td style="width: 20.15pt;margin: 0px;padding: 0px"></td> <td style="width: 20.15pt;margin: 0px;padding: 0px"></td> <td style="width: 20.15pt;margin: 0px;padding: 0px"></td> <td style="width: 20pt;margin: 0px;padding: 0px"></td> <td style="width: 18.15pt;margin: 0px;padding: 0px"></td> <td style="width: 25.9pt;margin: 0px;padding: 0px"></td> <td style="width: 23.2pt;margin: 0px;padding: 0px"></td> <td style="width: 22.6pt;margin: 0px;padding: 0px"></td> <td style="width: 22.3pt;margin: 0px;padding: 0px"></td> <td style="width: 22.3pt;margin: 0px;padding: 0px"></td> </tr> </tbody> </table> </div> </div>