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: 3.23% for Month Beginning 03/01/2010
Estimated 120% Mid-Term Rate: 3.26% for Month Beginning 04/01/2010

Interest Rate Change: 0.03%

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.