Publication 571 - Tax-Sheltered Annuity Plans (403(B) Plans) Page 6
Download a blank fillable Publication 571 - Tax-Sheltered Annuity Plans (403(B) Plans) in PDF format just by clicking the "DOWNLOAD PDF" button.
Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.
Complete Publication 571 - Tax-Sheltered Annuity Plans (403(B) Plans) with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.
Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21Figure 3-1. Table of One-Year Term
Table 3-1. Worksheet A. Cost of
Table 3-2. Worksheet A. Cost of
Premiums for $1,000 Life
Incidental Life Insurance
Incidental Life Insurance
Insurance Protection
Note. Use this worksheet to figure the cost of
Note. Use this worksheet to figure the cost of
incidental life insurance included in your
incidental life insurance included in your
annuity contract. This amount will be
annuity contract. This amount will be
Age
Cost
Age Cost
Age Cost
used to figure includible compensation
used to figure includible compensation
0 . . . $0.70
35 . . $0.99
70 . . $20.62
for your most recent year of service.
for your most recent year of service.
1 . . . 0.41
36 . . 1.01
71 . .
22.72
2 . . . 0.27
37 . . 1.04
72 . .
25.07
1. Enter the value of the
1. Enter the value of the
3 . . . 0.19
38 . . 1.06
73 . .
27.57
contract (amount payable
contract (amount payable
4 . . . 0.13
39 . . 1.07
74 . .
30.18
upon your death) . . . . . .
1.$20,000.00
upon your death) . . . . . . 1. $20,000.00
5 . . . 0.13
40 . . 1.10
75 . .
33.05
6 . . . 0.14
41 . . 1.13
76 . .
36.33
2. Enter the cash value in the
2. Enter the cash value in the
7 . . . 0.15
42 . . 1.20
77 . .
40.17
contract at the end of the
contract at the end of the
8 . . . 0.16
43 . . 1.29
78 . .
44.33
year . . . . . . . . . . . . . . .
2.
0.00
year . . . . . . . . . . . . . . . 2. $1,000.00
9 . . . 0.16
44 . . 1.40
79 . .
49.23
3. Subtract line 2 from line 1.
3. Subtract line 2 from line 1.
10 . . 0.16
45 . . 1.53
80 . .
54.56
This is the value of your
This is the value of your
11 . . 0.19
46 . . 1.67
81 . .
60.51
current life insurance
current life insurance
12 . . 0.24
47 . . 1.83
82 . .
66.74
protection . . . . . . . . . . .
3.$20,000.00
protection . . . . . . . . . . . 3. $19,000.00
13 . . 0.28
48 . . 1.98
83 . .
73.07
14 . . 0.33
49 . . 2.13
84 . .
80.35
4. Enter your age on your
4. Enter your age on your
15 . . 0.38
50 . . 2.30
85 . .
88.76
birthday nearest the
birthday nearest the
16 . . 0.52
51 . . 2.52
86 . .
99.16
beginning of the policy
beginning of the policy
17 . . 0.57
52 . . 2.81
87 . . 110.40
year . . . . . . . . . . . . . . .
4.
44
year . . . . . . . . . . . . . . . 4.
45
18 . . 0.59
53 . . 3.20
88 . . 121.85
19 . . 0.61
54 . . 3.65
89 . . 133.40
5. Enter the 1-year term
5. Enter the 1-year term
20 . . 0.62
55 . . 4.15
90 . . 144.30
premium for $1,000 of life
premium for $1,000 of life
21 . . 0.62
56 . . 4.68
91 . . 155.80
insurance based on your
insurance based on your
22 . . 0.64
57 . . 5.20
92 . . 168.75
age. (From
Figure
3-1) . .
5.
$1.40
age. (From Figure 3-1) . . 5.
$1.53
23 . . 0.66
58 . . 5.66
93 . . 186.44
6. Divide line 3 by $1,000 . .
6.
6. Divide line 3 by $1,000 . . 6.
20
19
24 . . 0.68
59 . . 6.06
94 . . 206.70
25 . . 0.71
60 . . 6.51
95 . . 228.35
7. Multiply line 6 by line 5.
7. Multiply line 6 by line 5.
26 . . 0.73
61 . . 7.11
96 . . 250.01
This is the cost of your
This is the cost of your
27 . . 0.76
62 . . 7.96
97 . . 265.09
7.
incidental life insurance . . 7.
incidental life insurance . .
$28.00
$29.07
28 . . 0.80
63 . . 9.08
98 . . 270.11
29 . . 0.83
64 . . 10.41
99 . . 281.05
30 . . 0.87
65 . . 11.90
Example 2. Lynne’s cash value in the con-
31 . . 0.90
66 . . 13.51
Figuring Includible Compensation
tract at the end of the second year is $1,000. In
32 . . 0.93
67 . . 15.20
year two, the cost of Lynne’s life insurance is
for Your Most Recent Year of
33 . . 0.96
68 . . 16.92
calculated as shown in Table 3-2.
Service
34 . . 0.98
69 . . 18.70
In year two, Lynne’s employer will include
$29.07 in her current year’s income. Lynne will
You can use
Worksheet B in chapter 9
subtract this amount when figuring her includible
If the current published premium rates
to determine your includible compen-
compensation.
!
per $1,000 of insurance protection
sation for your most recent year of
charged by an insurer for individual
service.
CAUTION
1-year term life insurance premiums available to
all standard risks are lower than those in the
Example. Floyd has been periodically work-
preceding table, you can use the lower rates for
ing full-time for a local hospital since September
figuring the cost of insurance in connection with
2009. He needs to figure his limit on annual
individual policies issued by the same insurer.
additions for 2012. The hospital’s normal annual
work period for employees in Floyd’s general
Example 1. Lynne Green, age 44, and her
type of work runs from January to December.
employer enter into a 403(b) plan that will pro-
During the periods that Floyd was employed
vide her with a $500 a month annuity upon
with the hospital, the hospital has always been
retirement at age 65. The agreement also pro-
eligible to provide a 403(b) plan to employees.
vides that if she should die before retirement,
Additionally, the hospital has never provided the
her beneficiary will receive the greater of
employees with a 457 deferred compensation
$20,000 or the cash surrender value in the life
plan, a transportation fringe benefit plan, or a
insurance contract. Using the facts presented
cafeteria plan.
we can determine the cost of Lynne’s life insur-
Floyd has never worked abroad and there is
ance protection as shown in
Table
3-1.
no life insurance provided under the plan.
Lynne’s employer has included $28 for the
Table 3-3 shows the service Floyd provided
cost of the life insurance protection in her current
to his employer, his compensation for the peri-
year’s income. When figuring her includible
compensation for this year, Lynne will subtract
ods worked, his elective deferrals, and his tax-
$28.
able wages.
Chapter 3 Limit on Annual Additions
Page 6
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial