Method of recovering investment in contract
(i) In general
(i)In general#
Gross income shall not include so much of any monthly annuity payment under a qualified employer retirement plan as does not exceed the amount obtained by dividing—
(I) the investment in the contract (as of the annuity starting date), by
(II) the number of anticipated payments determined under the table contained in clause (iii) (or, in the case of a contract to which subsection (c)(3)(B) applies, the number of monthly annuity payments under such contract).
(i)(I)#
the investment in the contract (as of the annuity starting date), by
(i)(II)#
the number of anticipated payments determined under the table contained in clause (iii) (or, in the case of a contract to which subsection (c)(3)(B) applies, the number of monthly annuity payments under such contract).
(ii)Certain rules made applicable#
Rules similar to the rules of paragraphs (2) and (3) of subsection (b) shall apply for purposes of this paragraph.
(iii)Number of anticipated payments#
If the annuity is payable over the life of a single individual, the number of anticipated payments shall be determined as follows:
| If the age of the annuitant on the annuity starting date is: | The number of anticipated payments is: |
|---|---|
| Not more than 55 | 360 |
| More than 55 but not more than 60 | 310 |
| More than 60 but not more than 65 | 260 |
| More than 65 but not more than 70 | 210 |
| More than 70 | 160. |
(iv)Number of anticipated payments where more than one life#
If the annuity is payable over the lives of more than 1 individual, the number of anticipated payments shall be determined as follows:
| If the combined ages of annuitants are: | The number is: |
|---|---|
| Not more than 110 | 410 |
| More than 110 but not more than 120 | 360 |
| More than 120 but not more than 130 | 310 |
| More than 130 but not more than 140 | 260 |
| More than 140 | 210. |