Method 2 Evaluation
If an annuity meets the additional condition for Method 2, then you must evaluate the annuity using Method 2. The Annuity Transfer Evaluation Method 2 (PDF) handout provides information on the Method 2 evaluation process.
Step 1: Determine whether the annuity is a commercial annuity.
Step 2: Determine if the annuity issues monthly periodic payments in equal amounts that are not deferred.
Step 3: Determine if the annuity is actuarially sound.
The remainder of this section discusses these steps.
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Transfer Evaluation - Evaluation Method 2