459.01. How is expected return on a variable annuity computed under the annuity rules?Stevenrcline202015-04-28T17:58:00Z2015-04-28T17:58:00Z1106609Summit Business Media5171414Site Map/Annuities/Nonqualified/Amounts Received as an Annuity/Fixed Annuities/Basic Rule2005-01-24T00:00:00ZTaxFactsDefaultArticleSite Map/Annuities/Quick Clicks/Exclusion Ratio10009-00-TF1.xml9.00;#1579;#1594;#0x010100C568DB52D9D0A14D9B2FDCC96666E9F2007948130EC3DB064584E219954237AF3900242457EFB8B24247815D688C526CD44D009C4E67E972694125ABDA91AC61F5E51FTax Facts 1How do you compute expected return under the annuity rules?1264133900.000000000TaxFactsDefaultArticle2010-01-20T13:17:48ZSBMEDIA\jgrady459.01. How is expected return on a variable annuity computed under the annuity rules?Generally speaking, expected return is the total amount that the annuitant or annuitants can expect to receive over the annuitization period of the contract.The expected return of a variable contract cannot be known in advance. Therefore, the calculation of the amount excludable from each year’s annuity payment does not employ the “exclusion ratio” used with fixed annuities. Instead, with a variable contract, the investment in the contract is divided over the period across which annuity payments will persist (Q 476).