The expected return on an annuity contract that will last for a specified amount of time is determined with reference to the life expectancy tables published by the IRS.

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The expected return on an annuity contract is primarily determined by the terms of the contract itself, including the amount of the investment, the interest rate, and the payout options chosen, rather than IRS life expectancy tables. Life expectancy tables may be used in calculating certain aspects of annuities, especially when determining the amount of each payment for a life annuity, but they are not the direct basis for determining the expected return.

The Expected Return on an Annuity Contract That Will Last