Estimated Interest Rates for IRC Section 72(t) & 72(q)

Rate for Month Beginning 6/1/2008
Tracking Period 4/15/2008 to 5/12/2008

Estimated 120% Mid-Term Rate 3.83%

The two month period for this estimated rate begins 7/1/2008 and ends 8/31/2008


The maximum interest rate that may be used 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.

Each calculation period runs from the 15th of the preceding month to the 14th of the current Month. Calculations (and our estimate) start over on the 1st of each month.

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.

The chart above illustrates the trend of estimated 120% Mid-Term AFR. The chart starts on the 15th of any month and completes a cycle on the 14th of the following month. The chart remains unchanged from the 15th of the month until the end of the month when the calculations start again. The closer to the end of the cycle, the more accurate the estimate.