Use the table below to determine the interest rate you should input into the
Interest Rate Assumption field in ImagiSOFT's
SEPP / 72(t) Software.
To quote from Rev Rul 2002-62:
"The 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."
For example: Your customer wants to receive Monthly Substantially Equal Periodic Payments
beginning April 1, 2014. The interest rate that corresponds to
March 2014 in the monthly column is 2.19 and the rate for February 2014 in the monthly column is 2.34. Enter either of these two numbers, 2.19% or 2.34%. If you choose 2.34%, which will give your customer a higher payout, click the Feb 2014 link to save the IRS source document in case your client is audited.
Software that supports this site:
Multi-Generational or Stretch IRA.