September 2016 SEPP/72(t) / Applicable Federal Rates

The IRS has issued the Applicable Federal Rates for September 2016, in Rev. Rul. 2016-20

Among other things, this rate is used to calculate 72(t) Payments/SEPPs.

When calculating a SEPP using the annuitization or amortization methods, an assumed rate of interest that is not more than 120 percent of the federal mid-term rate (determined in accordance with IRC § 1274(d) for either of the two months immediately preceding the month in which the distribution begins) can be used. 

Mid-term Rates for this month

 

 

Period for Compounding

 

                                                           

 

Annual

Semiannual

Quarterly

Monthly

120% AFR

1.47%

1.46%

1.46%

1.46%

 

 Please click here for more, including articles.