120% FED MID TERM RATE

L1: 120% FED MID TERM RATEIf I began a 72(T) plan in Nov 07, and the Fed 120% mid-term rates for Sept 07 was 5.23% and in Oct 07 was 5.76%, could I use 5.76% or do I have to choose the lower of the 2 monthly preceding rates?2007-10-11 12:14, By: RUSS, IP: [75.189.75.9]
L2: 120% FED MID TERM RATEYou have the rates transposed, as Sept produced the higher rate. You can use the higher of those two months for a Nov startup, or anything less. Typically, it is best to use the highest rate you can, as that allows you to partition your IRA and use a lower account balance for the SEPP IRA, and a higher balance for the non SEPP emergency fund IRA.2007-10-11 15:30, By: Alan S., IP: [24.116.165.60]