Estimated Interest Rates for IRC Section 72(t) & 72(q)
We normally post the published mid-term rate around the 20th of each month. The formula used to calculate the estimated rate was last updated on 12/07/2010. Past results/variances of the estimate using the current formula can be viewed at HERE.
Published 120% Mid-Term Rate: 1.34% for Month Beginning 02/01/2012
Estimated 120% Mid-Term Rate: 1.32% for Month Beginning 03/01/2012
Interest Rate Change: -0.02%
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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