### Question
How is the "applicable accumulation test minimum rate" defined?


### Answer
The term **applicable accumulation test minimum rate** is defined in *26 U.S.C. § 7702* as follows -

> the lesser of—


(A) an annual effective rate of 4 percent, or


(B) the insurance interest rate (as defined in subsection (f)(11)) in effect at the time the contract is issued

#### Citation:
  - *26 U.S.C. § 7702*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 79-DEFINITIONS**

