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Federal Interest Rates

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					     Applicable Federal Interest Rates for the Tax
   Valuation of Life Insurance and Annuity Products

The Revenue Act of 1987 amended section 807(d)(2)(B) of the Internal
 Revenue Code. It established the interest rate used in the calculation
 of tax reserves to be the greater of the applicable federal interest rate
  or the prevailing maximum statutory valuation rate for the contract’s
    calendar year of issue. The amendment is effective for contracts
      issued in tax years beginning after December 31, 1987. The
     Applicable Federal Interest Rate is determined annually by the
                        Secretary of the Treasury.

                  Applicable Federal Interest Rates
              Issue Year                          Rates

                 1988                                 7.77%
                 1989                                 8.16%
                 1990                                 8.37%
                 1991                                 8.42%
                 1992                                 8.40%
                 1993                                 8.10%
                 1994                                 7.45%
                 1995                                 6.99%
                 1996                                 6.63%
                 1997                                 6.33%
                 1998                                 6.31%
                 1999                                 6.30%
                 2000                                 6.09%
                 2001                                 6.00%
                 2002                                 5.71%
                 2003                                 5.27%
                 2004                                 4.82%
                 2005                                 4.44%
                 2006                                 3.98%

				
DOCUMENT INFO
Description: This is an example of federal interest rates. This document is useful for conducting federal interest rates.