Rev. Rul. 2016-2: State-assumed interest rates, insurance company post-2014 reserves

State-assumed interest rates, U.S. insurance companies

The IRS today released an advance version of Rev. Rul. 2016-2 providing the schedules of prevailing state-assumed interest rates for use by insurance companies to compute their reserves for tax years beginning after December 31, 2014. This guidance is to be used by insurance companies in computing their reserves for contracts concerning:

Related content

  • Life insurance and supplementary total and permanent disability benefits 
  • Individual annuities and pure endowments
  • Group annuities and pure endowments

Rev. Rul. 2016-2 [PDF 24 KB] is the 24th supplement to the interest rate schedules (originally set forth in Rev. Rul. 92-19) with respect to the prevailing state-assumed interest rates used by insurance companies to determine their reserves under section 807.

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