Source: https://www.charitableplanning.com/library/documents/2331122
Timestamp: 2020-07-07 09:58:46
Document Index: 626421301

Matched Legal Cases: ['§ 807', '§ 807', '§ 807', '§ 807', '§ 807', '§ 807', '§ 807', '§ 807']

Rev. Rul. 2017-3
Rev. Rul. 2017–03
For purposes of § 807(d)(4) of the Internal Revenue Code, for taxable years beginning after December 31, 2015, this ruling supplements the schedules of prevailing state assumed interest rates set forth in Rev. Rul. 92–19, 1992–1 C.B. 227. This information is to be used by insurance companies in computing their reserves for (1) life insurance and supplementary total and permanent disability benefits, (2) individual annuities and pure endowments, and (3) group annuities and pure endowments. As § 807(d)(2)(B) requires that the interest rate used to compute these reserves be the greater of (1) the applicable federal interest rate, or (2) the prevailing state assumed interest rate, the table of applicable federal interest rates in Rev. Rul. 92–19 is also supplemented.
Following are supplements to schedules A, B, C, and D to Part III of Rev. Rul. 92–19, providing prevailing state assumed interest rates for insurance products with different features issued in 2016 and 2017, and a supplement to the table in Part IV of Rev. Rul. 92–19, providing the applicable federal interest rates under § 807(d) for 2016 and 2017. This ruling does not supplement Parts I and II of Rev. Rul. 92–19.
This is the twenty-fifth supplement to the interest rates provided in Rev. Rul. 92–19. Earlier supplements were published in Rev. Rul. 93–58, 1993–2 C.B. 241 (interest rates for insurance products issued in 1992 and 1993); Rev. Rul. 94–11, 1994–1 C.B. 196 (1993 and 1994); Rev. Rul. 95–4, 1995–1 C.B. 141 (1994 and 1995); Rev. Rul. 96–2, 1996–1 C.B. 141 (1995 and 1996); Rev. Rul. 97–2, 1997–1 C.B. 134 (1996 and 1997); Rev. Rul. 98–2, 1998–1 C.B. 259 (1997 and 1998); Rev. Rul. 99–10, 1999–1 C.B. 671 (1998 and 1999); Rev. Rul. 2000–17, 2000–1 C.B. 842 (1999 and 2000); Rev. Rul. 2001–11, 2001–1 C.B. 780 (2000 and 2001); Rev. Rul. 2002–12, 2002–1 C.B. 624 (2001 and 2002); Rev. Rul. 2003–24, 2003–1 C.B. 557 (2002 and 2003); Rev. Rul. 2004–14, 2004–1 C.B. 511 (2003 and 2004); Rev. Rul. 2005–29, 2005–1 C.B. 1080 (2004 and 2005); Rev. Rul. 2006–25, 2006–1 C.B. 882 (2005 and 2006); Rev. Rul. 2007–10, 2007–1 C.B. 660 (2006 and 2007); Rev. Rul. 2008–19, 2008–1 C.B. 669 (2007 and 2008); Rev. Rul. 2009–3, 2009–5 I.R.B. 382 (2008 and 2009); Rev. Rul. 2010–7, 2010–8 I.R.B. 417 (2009 and 2010); Rev. Rul. 2011–23, 2011–43 I.R.B. 585 (2010 and 2011); Rev. Rul. 2012–6, 2012–6 I.R.B. 349 (2011 and 2012); Rev. Rul. 2013–4, 2013–9 I.R.B. 520 (2012 and 2013); Rev. Rul. 2014–4, 2014–5 I.R.B. 449 (2013 and 2014); Rev. Rul. 2015–2, 2015–3 I.R.B. 321 (2014 and 2015); and Rev. Rul. 2016–02, 2016–4 I.R.B. 284 (2015 and 2016).
Calendar Year of Issue 2017
Source: Rates calculated from the monthly averages, ending June 30, 2016, of Moody’s Composite Yield on Seasoned Corporate Bonds.
**As these rates exceed the applicable federal interest rate for 2017 of 1.46 percent, the valuation interest rate to be used for this product under § 807 is the applicable rate specified in this table.
2016 4.00*
*As this prevailing state assumed interest rate exceeds the applicable federal interest rate for 2016 of 1.56 percent, the valuation interest rate of 4.00 percent is to be used for this product under § 807.
Part III, Schedule C24 – 2016
STATUTORY VALUATION INTEREST RATES BASED ON NAIC STANDARD VALUATION LAW FOR 2016 CALENDAR YEAR BUSINESS GOVERNED BY THE 1980 AMENDMENTS
Yes Yes 5 or fewer 4.00* 3.75* 3.75*
More than 5, but not more than 10 4.00* 3.75* 3.75*
Yes No 5 or fewer 4.25* 4.00* 3.75*
No Yes or No 5 or fewer 4.00*
More than 5, but not more than 10 4.00* NOT APPLICABLE
*As these rates exceed the applicable federal interest rate for 2016 of 1.56 percent, the valuation interest rate to be used for this product under § 807 is the applicable rate specified in the above table.
Part III, Schedule D24 — 2016
Yes Yes 5 or fewer 4.25* 4.25* 3.75*
More than 5, but not more than 10 4.25* 4.25* 3.75*
More than 10, but not more than 20 4.00* 4.00* 3.75*
Yes No 5 or fewer 4.50* 4.25* 3.75*
More than 10, but not more than 20 4.25* 4.00* 3.75*
* As these rates exceed the applicable federal interest rate for 2016 of 1.56 percent, the valuation interest rate to be used for this product under § 807 is the applicable rate specified in the above table.
Sources: Rev. Rul. 2004–106, 2004–2 C.B. 893, for the 2005 rate; Rev. Rul. 2005–77, 2005–2 C.B. 1071, for the 2006 rate; Rev. Rul. 2006–61, 2006–2 C.B 1028 for the 2007 rate; Rev. Rul. 2007–70, 2007–2 C.B. 1158 for the 2008 rate; Rev. Rul. 2008–53, 2008–2 C.B. 1231 for the 2009 rate; Rev. Rul. 2009–38, 2009–49 I.R.B. 736, for the 2010 rate; Rev. Rul. 2010–29, 2010–50 I.R.B. 818 for the 2011 rate; Rev. Rul. 2011–31, 2011–49 I.R.B. 829 for the 2012 rate; Rev. Rul. 2012–31, 2012–49 I.R.B. 636 for the 2013 rate; Rev. Rul. 2013–26, 2013–50 I.R.B. 628 for the 2014 rate; Rev. Rul. 2014–31, 2014–50 I.R.B. 935 for the 2015 rate; Rev. Rul. 2015–25, 2015–49 I.R.B. 695 for the 2016 rate; and Rev. Rul. 2016–27, 2016–49 I.R.B. 781 for the 2017 rate.
Rev. Rul. 92–19 is supplemented by the addition to Part III of that ruling of prevailing state assumed interest rates under § 807 for certain insurance products issued in 2016 and 2017 and is further supplemented by an addition to the table in Part IV of Rev. Rul. 92–19 listing applicable federal interest rates. Parts I and II of Rev. Rul. 92–19 are not affected by this ruling.
The principal author of this revenue ruling is Sharon Y. Horn of the Office of Associate Chief Counsel (Financial Institutions and Products). For further information regarding this revenue ruling contact Ms. Horn at (202) 317-6995 (not a toll-free number).