3505 Lake Lynda Drive, Suite 212
Orlando, FL 32817-8327
1-800-879-6665 or 407-306-6160
Fax: 407-306-6107
As per Rev. Rul. 2002-62, the following rates are the only allowable rates for 2003 and later when computing substantially equal periodic payments under §72(t). They may also be used for 2002 when the ruling is optionally applied for 2002.
120% Mid-Term Applicable Federal Rates:
| Year | Month | Annual | Semiannual | Quarterly | Monthly |
| 2008 | Aug | 4.26 | 4.22 | 4.20 | 4.18 |
| 2008 | July | 4.14 | 4.10 | 4.08 | 4.07 |
| 2008 | June | 3.84 | 3.80 | 3.78 | 3.77 |
| 2008 | May | 3.29 | 3.26 | 3.25 | 3.24 |
| 2008 | Apr | 3.45 | 3.42 | 3.41 | 3.40 |
| 2008 | Mar | 3.57 | 3.54 | 3.52 | 3.51 |
| 2008 | Feb | 4.22 | 4.18 | 4.16 | 4.14 |
| 2008 | Jan | 4.31 | 4.26 | 4.24 | 4.22 |
| 2007 | Dec | 4.97 | 4.91 | 4.88 | 4.86 |
| 2007 | Nov | 5.28 | 5.21 | 5.18 | 5.15 |
| 2007 | Oct | 5.23 | 5.16 | 5.13 | 5.11 |
| 2007 | Sept | 5.76 | 5.68 | 5.64 | 5.61 |
| 2007 | Aug | 6.13 | 6.04 | 6.00 | 5.97 |
| 2007 | July | 5.96 | 5.87 | 5.83 | 5.80 |
| 2007 | June | 5.59 | 5.51 | 5.47 | 5.45 |
| 2007 | May | 5.56 | 5.48 | 5.44 | 5.42 |
| 2007 | Apr | 5.54 | 5.47 | 5.43 | 5.41 |
| 2007 | Mar | 5.84 | 5.76 | 5.72 | 5.69 |
| 2007 | Feb | 5.65 | 5.57 | 5.53 | 5.51 |
| 2007 | Jan | 5.51 | 5.44 | 5.40 | 5.38 |
| 2006 | Dec | 5.70 | 5.62 | 5.58 | 5.56 |
| 2006 | Nov | 5.65 | 5.57 | 5.53 | 5.51 |
| 2006 | Oct | 5.79 | 5.71 | 5.67 | 5.64 |
| 2006 | Sept | 6.03 | 5.94 | 5.90 | 5.87 |
| 2006 | Aug | 6.27 | 6.17 | 6.12 | 6.09 |
| 2006 | July | 6.08 | 5.99 | 5.95 | 5.92 |
| 2006 | June | 6.09 | 6.00 | 5.96 | 5.93 |
| 2006 | May | 5.82 | 5.74 | 5.70 | 5.67 |
| 2006 | Apr | 5.68 | 5.60 | 5.56 | 5.54 |
| 2006 | Mar | 5.42 | 5.35 | 5.31 | 5.29 |
| 2006 | Feb | 5.29 | 5.22 | 5.19 | 5.16 |
| 2006 | Jan | 5.39 | 5.32 | 5.29 | 5.26 |
| 2005 | Dec | 5.43 | 5.36 | 5.32 | 5.30 |
| 2005 | Nov | 5.09 | 5.03 | 5.00 | 4.98 |
| 2005 | Oct | 4.91 | 4.85 | 4.82 | 4.80 |
| 2005 | Sept | 5.04 | 4.98 | 4.95 | 4.93 |
| 2005 | Aug | 4.71 | 4.66 | 4.63 | 4.62 |
| 2005 | July | 4.63 | 4.58 | 4.55 | 4.54 |
| 2005 | June | 4.82 | 4.76 | 4.73 | 4.71 |
| 2005 | May | 5.15 | 5.09 | 5.06 | 5.04 |
| 2005 | Apr | 4.92 | 4.86 | 4.83 | 4.81 |
| 2005 | Mar | 4.60 | 4.55 | 4.52 | 4.51 |
| 2005 | Feb | 4.60 | 4.55 | 4.52 | 4.51 |
| 2005 | Jan | 4.53 | 4.48 | 4.46 | 4.44 |
| 2004 | Dec | 4.28 | 4.24 | 4.22 | 4.20 |
| 2004 | Nov | 4.26 | 4.22 | 4.20 | 4.18 |
| 2004 | Oct | 4.36 | 4.31 | 4.29 | 4.27 |
| 2004 | Sept | 4.61 | 4.56 | 4.53 | 4.52 |
| 2004 | Aug | 4.81 | 4.75 | 4.72 | 4.70 |
| 2004 | July | 4.94 | 4.88 | 4.85 | 4.83 |
| 2004 | June | 4.67 | 4.62 | 4.59 | 4.58 |
| 2004 | May | 3.81 | 3.77 | 3.75 | 3.74 |
| 2004 | Apr | 3.80 | 3.76 | 3.74 | 3.73 |
| 2004 | Mar | 4.01 | 3.97 | 3.95 | 3.94 |
| 2004 | Feb | 4.13 | 4.09 | 4.07 | 4.06 |
| 2004 | Jan | 4.23 | 4.19 | 4.17 | 4.15 |
| 2003 | Dec | 4.26 | 4.22 | 4.20 | 4.18 |
| 2003 | Nov | 3.99 | 3.95 | 3.93 | 3.92 |
| 2003 | Oct | 4.39 | 4.34 | 4.32 | 4.30 |
| 2003 | Sept | 4.12 | 4.08 | 4.06 | 4.05 |
| 2003 | Aug | 3.25 | 3.22 | 3.21 | 3.20 |
| 2003 | July | 3.06 | 3.04 | 3.03 | 3.02 |
| 2003 | Jun | 3.68 | 3.65 | 3.63 | 3.62 |
| 2003 | May | 3.82 | 3.78 | 3.76 | 3.75 |
| 2003 | Apr | 3.56 | 3.53 | 3.51 | 3.50 |
| 2003 | Mar | 3.89 | 3.85 | 3.83 | 3.82 |
| 2003 | Feb | 3.93 | 3.89 | 3.87 | 3.86 |
| 2003 | Jan | 4.12 | 4.08 | 4.06 | 4.05 |
| 2002 | Dec | 3.98 | 3.94 | 3.92 | 3.91 |
| 2002 | Nov | 3.68 | 3.65 | 3.63 | 3.62 |
|
2002 |
Oct |
4.16 | 4.12 | 4.10 | 4.09 |
| 2002 | Sep | 4.51 | 4.46 | 4.44 | 4.42 |
| 2002 | Aug | 5.10 | 5.04 | 5.01 | 4.99 |
| 2002 | Jul | 5.53 | 5.46 | 5.42 | 5.40 |
| 2002 | Jun | 5.71 | 5.63 | 5.59 | 5.57 |
| 2002 | May | 6.01 | 5.92 | 5.88 | 5.85 |
| 2002 | Apr | 5.60 | 5.52 | 5.48 | 5.46 |
| 2002 | Mar | 5.43 | 5.36 | 5.32 | 5.30 |
| 2002 | Feb | 5.58 | 5.50 | 5.46 | 5.44 |
| 2002 | Jan | 5.40 | 5.33 | 5.29 | 5.27 |
| A so-called "reasonable" interest rate is required when using the Amortization or Annuity Factor methods (see IRS Notice 89-25, 1989-1 C.B. 662, Q&A 11 and 12) to compute a pre-59½ pension plan distribution that avoids the 10% penalty for early distributions. In various letter rulings, the IRS has accepted use of the 120% Annual Long-Term Applicable Federal Rate for the month in which distributions start. (Some commentators read some of the rulings as saying that you should use 120% of the Annual Long-Term Rate, which is slightly different. However, the difference may be seen as de minimus.) If you judge this rate to be appropriate, it may be used in Brentmark Software's Retirement Plan Analyzer and Retirement Distributions Planner programs for pre-59½ distribution calculations. | Warning: Letter Rulings cannot be used as binding
authority for IRS positions. Since the IRS has not issued any rulings other than Letter
Rulings on the topic of "reasonable" interest rates for pre-59½ distributions,
there is no binding authority on this topic. Disclaimer: Your use of the following rates must be based solely on your judgment of their applicability. While a reading of Letter Rulings may suggest that this rate is appropriate, Brentmark Software bears no responsibility for any decision by you to use it. This information is provided here only as a service, not as authority for its applicability in your circumstances. |
120% Annual Long-Term Applicable Federal Rates:
| Jan | Feb | Mar | Apr | May | June | Jul | Aug | Sep | Oct | Nov | Dec | |
| 1997 | 7.88 | 8.16 | 8.26 | 8.28 | 8.65 | 8.57 | 8.41 | 8.10 | 7.89 | 8.04 | 7.72 | 7.59 |
| 1998 | 7.34 | 7.13 | 7.12 | 7.19 | 7.14 | 7.25 | 7.08 | 6.88 | 6.91 | 6.57 | 6.14 | 6.32 |
| 1999 | 6.27 | 6.30 | 6.38 | 6.82 | 6.81 | 6.97 | 7.34 | 7.51 | 7.53 | 7.59 | 7.69 | 7.79 |
| 2000 | 7.77 | 8.15 | 8.13 | 7.82 | 7.46 | 7.69 | 7.70 | 7.50 | 7.33 | 7.16 | 7.33 | 7.19 |
| 2001 | 6.96 | 6.60 | 6.71 | 6.53 | 6.53 | 6.92 | 7.01 | 6.88 | 6.70 | 6.48 | 6.39 | 6.08 |
| 2002 | 6.57 | 6.73 | 6.60 | 6.76 | 7.04 | 6.85 | 6.84 | 6.57 | 6.29 | 5.89 | 5.53 | 5.91 |
Brentmark Software
3505 Lake Lynda Drive, Suite 212
Orlando, FL 32817-8327
1-800-879-6665 or 407-306-6160
Fax: 407-306-6107
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