120% Mid-Term Applicable Federal Rates
  Use the table below to determine the interest rate you should input into the Interest Rate Assumption field in IMAGISOFT SEPP Software (also known as 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 January 1, 2008. The interest rate that corresponds to December 2007 in the monthly column is 4.86 and the rate for November 2007 in the monthly column is 5.15. Enter the Lower of these two numbers which is 4.86. (Click the link on any month to open the IRS source document where these interest rates were obtained.)

Software that supports this site: 72(t), RMD Stretch IRA, and Roth IRA Conversion.


 
120% Mid-Term Applicable Federal Rates (AFR)
Use the Interest Rate Below Based on the Payment Frequency
Month Annual Semiannual Quarterly Monthly
Sept 2010 2.33 2.32 2.31 2.31
August 2010 2.62 2.60 2.59 2.59
July 2010 2.83 2.81 2.80 2.79
June 2010 3.27 3.24 3.23 3.22
May 2010 3.45 3.42 3.41 3.40
April 2010 3.25 3.22 3.21 3.20
March 2010 3.23 3.20 3.19 3.18
February 2010 3.39 3.36 3.35 3.34
January 2010 2.95 2.93 2.92 2.91
December 2009 3.16 3.14 3.13 3.12
November 2009 3.10 3.08 3.07 3.06
October 2009 3.20 3.17 3.16 3.15
Sept 2009 3.45 3.42 3.41 3.40
August 2009 3.37 3.34 3.33 3.32
July 2009 3.32 3.29 3.28 3.27
June 2009 2.71 2.69 2.68 2.68
May 2009 2.47 2.45 2.44 2.44
April 2009 2.59 2.57 2.56 2.56
March 2009 2.33 2.32 2.31 2.31
February 2009 1.98 1.97 1.97 1.96
January 2009 2.48 2.46 2.45 2.45
December 2008 3.43 3.40 3.39 3.38
November 2008 3.57 3.54 3.52 3.51
October 2008 3.81 3.77 3.75 3.74
Sept 2008 4.16 4.12 4.10 4.09
August 2008 4.26 4.22 4.20 4.18
July 2008 4.14 4.10 4.08 4.07
June 2008 3.84 3.80 3.78 3.77
May 2008 3.29 3.26 3.25 3.24
April 2008 3.45 3.42 3.41 3.40
March 2008 3.57 3.54 3.52 3.51
February 2008 4.22 4.18 4.16 4.14
January 2008 4.31 4.26 4.24 4.22
December 2007 4.97 4.91 4.88 4.86
November 2007 5.28 5.21 5.18 5.15
October 2007 5.23 5.16 5.13 5.11
Sept 2007 5.76 5.68 5.64 5.61
August 2007 6.13 6.04 6.00 5.97
July 2007 5.96 5.87 5.83 5.80
June 2007 5.59 5.51 5.47 5.45
May 2007 5.56 5.48 5.44 5.42
April 2007 5.54 5.47 5.43 5.41
March 2007 5.84 5.76 5.72 5.69
February 2007 5.65 5.57 5.53 5.51
January 2007 5.51 5.44 5.40 5.38
December 2006 5.70 5.62 5.58 5.56
November 2006 5.65 5.57 5.53 5.51
October 2006 5.79 5.71 5.67 5.64
Sept 2006 6.03 5.94 5.90 5.87
August 2006 6.27 6.17 6.12 6.09
July 2006 6.08 5.99 5.95 5.92
June 2006 6.09 6.00 5.96 5.93
May 2006 5.82 5.74 5.70 5.67
April 2006 5.68 5.60 5.56 5.54
March 2006 5.42 5.35 5.31 5.29
February 2006 5.29 5.22 5.19 5.16
January 2006 5.39 5.32 5.29 5.26
December 2005 5.43 5.36 5.32 5.30
November 2005 5.09 5.03 5.00 4.98
October 2005 4.91 4.85 4.82 4.80
Sept 2005 5.04 4.98 4.95 4.93
August 2005 4.71 4.66 4.63 4.62
July 2005 4.63 4.58 4.55 4.54
June 2005 4.82 4.76 4.73 4.71
May 2005 5.15 5.09 5.06 5.04
April 2005 4.92 4.86 4.83 4.81
March 2005 4.60 4.55 4.52 4.51
February 2005 4.60 4.55 4.52 4.51
January 2005 4.53 4.48 4.46 4.44
December 2004 4.28 4.24 4.22 4.20
November 2004 4.26 4.22 4.20 4.18
October 2004 4.36 4.31 4.29 4.27
Sept 2004 4.61 4.56 4.53 4.52
August 2004 4.81 4.75 4.72 4.70
July 2004 4.94 4.88 4.85 4.83
June 2004 4.67 4.62 4.59 4.58
May 2004 3.81 3.77 3.75 3.74
April 2004 3.80 3.76 3.74 3.73
March 2004 4.01 3.97 3.95 3.94
February 2004 4.13 4.09 4.07 4.06
January 2004 4.23 4.19 4.17 4.15
December 2003 4.26 4.22 4.20 4.18
November 2003 3.99 3.95 3.93 3.92
October 2003 4.39 4.34 4.32 4.30
Sept 2003 4.12 4.08 4.06 4.05
August 2003 3.25 3.22 3.21 3.20
July 2003 3.06 3.04 3.03 3.02
June 2003 3.68 3.65 3.63 3.62
May 2003 3.82 3.78 3.76 3.75
April 2003 3.56 3.53 3.51 3.50
March 2003 3.89 3.85 3.83 3.82
February 2003 3.93 3.89 3.87 3.86
January 2003 4.12 4.08 4.06 4.05
December 2002 3.98 3.94 3.92 3.91
November 2002 3.68 3.65 3.63 3.62

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