How Can We Help?
< Back
You are here:
Print

Another Question About What Interest Rate to Use

Posted
Last Updated On
ByMike

L1: Another Question About What Interest Rate to UseWhat would be the minimum interest rate the IRS would let a person get away with in calculating a 72T distribution? My CPA is having a hard time finding out. Would 3.5 to 4% even be in the ball park??? Any thoughts would be appreciated. I don’t want to pull any more that I have to with these market conditions but need more than the minimum.2001-09-18 20:32, By: Mike, IP: [127.0.0.1]
L2: RE: Another Question About What Interest Rate to UThe interest rate must be “reasonable” based on when the plan is initiated. There are no minimum or maximum rates. There are only rates that have been approved in a Private Letter Ruling [PLR] based on the facts pertaining to that particular individual and the exact circumstances addressed in the ruling. What you don’t know is what negotiations toook place between the IRS and the taxpayer to arrive at the rate. And remember, you can’t rely on a PLR given to another taxpayor. You may want to check with your IRA custodian and ask what they feel is reasonable and what code will they use on the 1099R when submitted to the IRS if you use their reasonable rate. 2001-09-19 13:59, By: Gfw, IP: [127.0.0.1]

Table of Contents