May 2002 assumed interest rate

L1: May 2002 assumed interest rateA client started a SEPP in May of 2002 and used 8% as his assumed interest rate. He is now questioning whether this may have been too aggressive.120% of the Federal Longterm rate was 7.04% at that time. I saw the PLRs that said 8% was a reasonable rate at some point for some person. What factors may change that for someone else? Does the investment used enter into this (i.e. fixed or market based)?2002-10-17 12:16, By: Dave, IP: [127.0.0.1]
L2: May 2002 assumed interest rateI may have been, but it’s too late to make a change now and 8% isn’t that much higher than 7.04%. There have been several PLRs that have approved 8% (or other flat rates) in the past, but you also have to look at what the AFRs were at the time they approved. 2002-10-18 06:38, By: Gfw, IP: [127.0.0.1]