Annuity factor

Present value of $1 paid for each of t periods.

Annuity Factor

The calculation of the present value of a cash flow or other income stream that produces $1 in income over so many periods of time.

References in periodicals archive ?

t] > 0, the expectation in Equation (1), the annuity factor, can be rewritten as:

Valuation and hedging of the Ruin-Contingent Life Annuity (RCLA)

The gift reportable for tax purposes is fixed, given the fair market value of the gift and the applicable annuity factor (combining term, Section 7520 rate and retained annuity).

GRATs: the time is now: Grantor Retained Annuity Trusts, or GRATs, are having a moment. Here's why estate tax changes and low rates are making these products so appealing--and what you need to know when considering them for clients

Under the fixed annuity factor method, the annual payment is determined by dividing the account balance by an annuity factor calculated using the mortality table in Rev.

Substantially equal payment exception

A property valued at the end of its life cycle would be reduced to the ground value, as the annuity factor would be reduced to zero for remaining life (RL = 0), thus eliminating the first term of the formula.

Standard ground value in the context of the harmonization of property valuation

To arrive at the annuity factor, the reciprocal of the remainder factor (the term interest factor) is divided by the discount rate.

Estate planning with S corporations after 1997 using GRITS, GRATS and GRUTS

Reference Tables Table A Retirement Age Annuity Factor 55 13.

You can't afford not to plan for future

In addition to selecting the annuity factor (the present value of $1 per year payable monthly for the life of the participant age X), the long formula specifically involves discounting for mortality and for interest.

Evaluating pension benefits in divorce

If a participant preferred an annuity, his lump sum would be divided by an appropriate annuity factor.

A pension plan for today

x,t] denotes the updated actuarial present value annuity factor, taking into account expected systematic mortality improvements, where there are long-term expected mortality improvements, [[?

Managing systematic mortality risk with group self-pooling and annuitization schemes

The annuity factor has been adjusted to reflect the statistical mortality factors for the grantor's age at the beginning and end of the term; however, the IRS lost a key Tax Court case involving the annuity factor.

GRAT planning with S corp. stock

The account balance is divided by an annuity factor taken from the mortality table and based on a reasonable interest rate.

Individual retirement accounts: early withdrawals and changes for 1997

s] is the deferred annuity factor for a normalized payout profile with [n.

Lifecycle portfolio choice with systematic longevity risk and variable investment-linked deferred annuities