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's SEPP / 72(t) Software.

Guidance is provided from IRS Revenue Notice 2022-6 which states: "The interest rate that may be used to apply the fixed amortization method or the fixed annuitization method is any interest rate that is not more than the greater of (i) 5.00% or (ii) 120% of the federal mid-term rate (determined in accordance with section 1274(d) 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 March 10, 2024. The interest rate that corresponds to February 2024 in the monthly column is 4.68% and the rate for January 2024 is 5.12%. In the software enter the greater of 5.00% (paragraph above), 5.12% (January 2024 monthly below), or 4.68% (February 2024 below), which is 5.12%, which will give your customer the highest monthly payout. Click the January 2024 link to save the IRS source document, and keep the 72(t) calculation page to help defend your client in the event of an IRS audit. In the rare occurance your customer wants a lower payout, they may choose an interest rate ranging from 0% to 5.12%.

120% Mid-Term Applicable Federal Rates (AFR)
Use the Interest Rate Below Based on the Payment Frequency
Month Annual Semiannual Quarterly Monthly
March 2024 4.97 4.91 4.88 4.86
February 2024 4.79 4.73 4.70 4.68
January 2024 5.25 5.18 5.15 5.12
December 2023 5.79 5.71 5.67 5.64
November 2023 5.65 5.57 5.53 5.51
October 2023 5.33 5.26 5.23 5.20
September 2023 5.04 4.98 4.95 4.93
August 2023 4.92 4.86 4.83 4.81
July 2023 4.62 4.57 4.54 4.53
June 2023 4.43 4.38 4.36 4.34
May 2023 4.30 4.25 4.23 4.21
April 2023 4.99 4.93 4.90 4.88
March 2023 4.45 4.40 4.38 4.36
February 2023 4.59 4.54 4.51 4.50
January 2023 4.62 4.57 4.54 4.53
December 2022 5.14 5.08 5.05 5.03
November 2022 4.78 4.72 4.69 4.67
October 2022 3.94 3.90 3.88 3.87
September 2022 3.52 3.49 3.47 3.46
August 2022 3.80 3.76 3.74 3.73
July 2022 3.59 3.56 3.54 3.53
June 2022 3.52 3.49 3.47 3.46
May 2022 3.01 2.99 2.98 2.97
April 2022 2.24 2.23 2.22 2.22
March 2022 2.09 2.08 2.07 2.07
February 2022 1.69 1.68 1.68 1.67
January 2022 1.57 1.56 1.56 1.55
December 2021 1.52 1.51 1.51 1.51
November 2021 1.30 1.30 1.30 1.30
October 2021 1.09 1.09 1.09 1.09
September 2021 1.03 1.03 1.03 1.03
August 2021 1.20 1.20 1.20 1.20
July 2021 1.20 1.20 1.20 1.20
June 2021 1.22 1.22 1.22 1.22
May 2021 1.28 1.28 1.28 1.28
April 2021 1.07 1.07 1.07 1.07
March 2021 .74 .74 .74 .74
February 2021 .67 .67 .67 .67
January 2021 .62 .62 .62 .62
December 2020 .58 .58 .58 .58
November 2020 .47 .47 .47 .47
October 2020 .46 .46 .46 .46
September 2020 .42 .42 .42 .42
August 2020 .49 .49 .49 .49
July 2020 .54 .54 .54 .54
June 2020 .52 .52 .52 .52
May 2020 .70 .70 .70 .70
April 2020 1.19 1.19 1.19 1.19
March 2020 1.83 1.82 1.82 1.81
February 2020 2.10 2.09 2.08 2.08
January 2020 2.03 2.02 2.01 2.01
December 2019 2.03 2.02 2.01 2.01
November 2019 1.91 1.90 1.90 1.89
October 2019 1.81 1.80 1.80 1.79
Sep 2019 2.13 2.12 2.11 2.11
Aug 2019 2.24 2.23 2.22 2.22
Jul 2019 2.50 2.48 2.47 2.47
Jun 2019 2.86 2.84 2.83 2.82
May 2019 2.85 2.83 2.82 2.81
April 2019 3.06 3.04 3.03 3.02
March 2019 3.10 3.08 3.07 3.06
February 2019 3.15 3.13 3.12 3.11
January 2019 3.47 3.44 3.43 3.42
December 2018 3.69 3.66 3.64 3.63
November 2018 3.65 3.62 3.60 3.59
October 2018 3.40 3.37 3.36 3.35
Sep 2018 3.44 3.41 3.40 3.39
Aug 2018 3.37 3.34 3.33 3.32
Jul 2018 3.45 3.42 3.41 3.40
Jun 2018 3.44 3.41 3.40 3.39
May 2018 3.23 3.20 3.19 3.18
April 2018 3.27 3.24 3.23 3.22
March 2018 3.08 3.06 3.05 3.04
February 2018 2.78 2.76 2.75 2.74
January 2018 2.62 2.60 2.59 2.59
December 2017 2.54 2.52 2.51 2.51
November 2017 2.40 2.39 2.38 2.38
October 2017 2.22 2.21 2.20 2.20
Sep 2017 2.33 2.32 2.31 2.31
Aug 2017 2.34 2.33 2.32 2.32
Jul 2017 2.27 2.26 2.25 2.25
Jun 2017 2.35 2.34 2.33 2.33
May 2017 2.45 2.44 2.43 2.43
April 2017 2.55 2.53 2.52 2.52
March 2017 2.47 2.45 2.44 2.44
February 2017 2.53 2.51 2.50 2.50
January 2017 2.36 2.35 2.34 2.34
December 2016 1.76 1.75 1.75 1.74
November 2016 1.61 1.60 1.60 1.59
October 2016 1.56 1.55 1.55 1.55
Sep 2016 1.47 1.46 1.46 1.46
Aug 2016 1.43 1.42 1.42 1.42
Jul 2016 1.71 1.70 1.70 1.69
Jun 2016 1.70 1.69 1.69 1.68
May 2016 1.71 1.70 1.70 1.69
April 2016 1.74 1.73 1.73 1.72
March 2016 1.77 1.76 1.76 1.75
February 2016 2.18 2.17 2.16 2.16
January 2016 2.17 2.16 2.15 2.15
December 2015 2.01 2.00 2.00 1.99
November 2015 1.91 1.90 1.90 1.89
October 2015 2.00 1.99 1.99 1.98
Sep 2015 2.12 2.11 2.10 2.10
Aug 2015 2.18 2.17 2.16 2.16
Jul 2015 2.12 2.11 2.10 2.10
Jun 2015 1.92 1.91 1.91 1.90
May 2015 1.83 1.82 1.82 1.81
April 2015 2.04 2.03 2.02 2.02
March 2015 1.76 1.75 1.75 1.74
February 2015 2.04 2.03 2.02 2.02
January 2015 2.10 2.09 2.08 2.08
December 2014 2.06 2.05 2.04 2.04
November 2014 2.28 2.27 2.26 2.26
October 2014 2.22 2.21 2.20 2.20
Sep 2014 2.23 2.22 2.21 2.21
Aug 2014 2.27 2.26 2.25 2.25
Jul 2014 2.18 2.17 2.16 2.16
Jun 2014 2.29 2.28 2.27 2.27
May 2014 2.31 2.30 2.29 2.29
April 2014 2.17 2.16 2.15 2.15
March 2014 2.21 2.20 2.19 2.19
February 2014 2.36 2.35 2.34 2.34
January 2014 2.10 2.09 2.08 2.08
December 2013 1.98 1.97 1.97 1.96
November 2013 2.07 2.06 2.05 2.05
October 2013 2.31 2.30 2.29 2.29
Sep 2013 1.99 1.98 1.98 1.97
Aug 2013 1.95 1.94 1.94 1.93
Jul 2013 1.47 1.46 1.46 1.46
Jun 2013 1.14 1.14 1.14 1.14
May 2013 1.20 1.20 1.20 1.20
April 2013 1.31 1.31 1.31 1.31
March 2013 1.31 1.31 1.31 1.31
February 2013 1.21 1.21 1.21 1.21
January 2013 1.04 1.04 1.04 1.04
December 2012 1.14 1.14 1.14 1.14
November 2012 1.07 1.07 1.07 1.07
October 2012 1.12 1.12 1.12 1.12
Sep 2012 1.01 1.01 1.01 1.01
Aug 2012 1.06 1.06 1.06 1.06
Jul 2012 1.10 1.10 1.10 1.10
Jun 2012 1.28 1.28 1.28 1.28
May 2012 1.57 1.56 1.56 1.55
April 2012 1.38 1.38 1.38 1.38
March 2012 1.30 1.30 1.30 1.30
February 2012 1.34 1.34 1.34 1.34
January 2012 1.40 1.40 1.40 1.40
December 2011 1.53 1.52 1.52 1.52
November 2011 1.45 1.44 1.44 1.44
October 2011 1.44 1.43 1.43 1.43
Sep 2011 1.95 1.94 1.94 1.93
Aug 2011 2.28 2.27 2.26 2.26
Jul 2011 2.40 2.39 2.38 2.38
Jun 2011 2.73 2.71 2.70 2.69
May 2011 2.94 2.92 2.91 2.90
April 2011 2.98 2.96 2.95 2.94
March 2011 2.94 2.92 2.91 2.90
February 2011 2.80 2.78 2.77 2.76
January 2011 2.34 2.33 2.32 2.32
December 2010 1.83 1.82 1.82 1.81
November 2010 1.91 1.90 1.90 1.89
October 2010 2.07 2.06 2.05 2.05
Sep 2010 2.33 2.32 2.31 2.31
Aug 2010 2.62 2.60 2.59 2.59
Jul 2010 2.83 2.81 2.80 2.79
Jun 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
Sep 2009 3.45 3.42 3.41 3.40
Aug 2009 3.37 3.34 3.33 3.32
Jul 2009 3.32 3.29 3.28 3.27
Jun 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
Sep 2008 4.16 4.12 4.10 4.09
Aug 2008 4.26 4.22 4.20 4.18
Jul 2008 4.14 4.10 4.08 4.07
Jun 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
Sep 2007 5.76 5.68 5.64 5.61
Aug 2007 6.13 6.04 6.00 5.97
Jul 2007 5.96 5.87 5.83 5.80
Jun 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
Sep 2006 6.03 5.94 5.90 5.87
Aug 2006 6.27 6.17 6.12 6.09
Jul 2006 6.08 5.99 5.95 5.92
Jun 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
Sep 2005 5.04 4.98 4.95 4.93
Aug 2005 4.71 4.66 4.63 4.62
Jul 2005 4.63 4.58 4.55 4.54
Jun 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