72t interest rates

L1: 72t interest ratesIs the maximum interest allowed in 72t calculations simply 120% of the mid-term fed rate? Or can we use other assumed rates such as 7-9%? If we use the higher rates, do we have to have a private letter ruling?2003-09-18 17:51, By: Roger, IP: [127.0.0.1]
L2: 72t interest ratesFrom our interest rate page… Revenue Ruling 2002-62 – Qualified SEPP Plans post 12/31/2002 – 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.
Prior to 1/1/2003 the generally accepted maximum was 120% of the Long Term AFR which is currently about 6.11% – Anything beyond the max rate in 2002-62 you should probably get a PLR. The real question is will it be a favorable PLR… good luck!2003-09-18 18:16, By: Gfw, IP: [127.0.0.1]