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The US Treasury just published the AFRs for 9/23 and 120% of the mid-term applicable federal rate is 5.04% exceeding 5.00% for the 1st time in a long time. This means new SEPP plans launched in October or November will be able to use 5.04%. Now let's not get real excited; this is approximately $300 per year in additional distributions on a $1,000,000 IRA --- who cares? Nonetheless, the trend maybe you friend in that 10/23 and forward AFRs may increase further as the Federal Reserve is showing no sign of rate cuts for the near-term.
UPDATE --- the October 2023 AFRs are now out and the 120% mid-term AFR jumped to 5.33%. This is a fairly meaningful one month move. Annual impact on a $1,000,000 IRA is about $2,500 compared to 5%. This rate is 1st available for plans launched in November, 2023.
Lastly, and my opinion only, yesterday the Federal Reserve met and announced a "hawkish pause" in the discount ratel eading me to suspect yet another increase in the AFRs for November which will be released around 10/15 to 10/20.
