72t

L1: 72tI started 72t distributions in 4th quarter of 1995. How can I find the correct interest rate for that time period? I’m unsure if the financial institution did a proper calculation. Thanks for any help.2009-07-13 22:13, By: 2ds, IP: [207.119.29.4]
L2: 72tIn 1995, we were still governed by Notice 89-25, which refers to a “reasonable” interest rate. The maximum rate was therefore not etched in granite like the current rates are under 2002-62. In Notice 89-25, they even use a rate of 8% in their example.
This is not a good time to have to be concerned since your very long plan is probably nearing an end. Is the IRS inquiring about one of your returns? Do you not have any of your original calculation input figures?2009-07-13 22:41, By: Alan S., IP: [24.116.165.60]

L3: 72tWhen Notice 89-25 was issued, 8% was very closeto (or slightly less than) the 120% Long-Term Rate.
Here are theLong-Term Rates for 1989

Month Annual

Jan-89
9.28%

Feb-89
9.29%

Mar-89
9.14%

Apr-89
9.40%

May-89
9.43%

Jun-89
9.23%

Jul-89
8.70%

Aug-89
8.32%

Sep-89
8.20%

Oct-89
8.34%

Nov-89
8.32%

Dec-89
8.09%

2009-07-13 22:47, By: Gfw, IP: [216.80.125.206]

L2: 72tInterest rates before 2002-62 were never clearly defined as they were in 2002-62. With that said, the generally accepted maximum interest rate was a rate that equaled the 120% Long-Term rate. The following long-term rates werefor the last 4 months of ’95.

Sep-95
6.91%

Oct-95
6.77%

Nov-95
6.55%

Dec-95
6.36%

2009-07-13 22:43, By: Gfw, IP: [216.80.125.206]

L3: 72tArre these 120% of the rates, or do we have to multiply these rates by 120% to get the maximum allowable rates ?2009-07-14 03:45, By: dlzallestaxes, IP: [72.78.231.205]

L4: 72tThey are the base (non-adjusted)Applicable Federal Rates – multiply by 120% to get approximate 120% rates.
The rates come fromhttp://evans-legal.com/dan/afr.html.It is about the only website that has rates back to 1995. Even the IRS stops at about 2000.
2009-07-14 10:01, By: Gfw, IP: [216.80.125.206]