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Estimated Interest Rates for IRC Section 72(t) & 72(q)
We normally post the actual mid-term rate around the 20th of each month. Past results of the current estimation formula can be viewed at HERE.
Published 120% Mid-Term Rate 2.48% for Month Beginning 01/01/2009
Estimated 120% Mid-Term Rate 1.99% for Month Beginning 02/01/2009
Change from Previously Published to New Estimate -0.49%
The chart above illustrates our estimate of the next 120% Mid-Term AFR. Calculations
for the estimated rate start on the 15th of each month. The calculation cycle is
completed on the 14th of the following month.
The estimated rate and chart remain unchanged from the 15th of the month until the
end of the month when the calculations start again. The closer to the 15th of the
month, the more accurate the estimate should be.
Rates are published monthly by the Treasury. The maximum interest rate that
may be used for a SEPP plan is any interest rate that is not more than 120 percent
of the federal mid-term rate for either of the two months immediately preceding
the month in which the distribution begins.
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