This table contains the maximum Applicable Federal Rates (also known as the 120% Federal Mid-Term Rates) allowed to be used in calculating SEPP distributions.
What is an AFR and how do I pick one?
You can use EITHER the current month’s rate OR one of the prior 2 months rates. For example, if you’re calculating a distribution which will start in June, you can use April, May or June rates.
Verify the rate you plan to use at the IRS website: https://apps.irs.gov/app/picklist/list/federalRates.html.
Useage Note: these are the 120% rates so you use them as-is.
Month | Annual Rate |
Mar-2021 | 0.74 |
Feb-2021 | 0.67 |
Jan-2021 | 0.62 |
For historical rates back to 2002, click here.