The annuity method determines payments by dividing the plan balance by an annuity factor, which is the present value of an annuity of $1 per year, beginning at the individual's age attained in the first distribution year and continuing for the life of the individual. The annuity factor must be derived using Appendix B as provided by the plan in Revenue Ruling 2002-62 only reflecting a single taxpayer. An assumed interest rate must be reasonable on the day distributions begin. Annual payments are determined once for the first distribution year and are the same amounts in succeeding years.