highest possible interest rate

L1: highest possible interest rate2006-02-02 14:55, By: greg, IP: [69.222.136.126]
L2: highest possible interest rateNot unless 6% is less than or equal to the maximum rate.
The maximum interest rate that may be used is any interest rate that is not more than 120 percent of the federal mid-term rate for either of the two months immediately preceding the month in which the distribution begins.
The last time it hit 6% was 5/1/2002
2006-02-02 15:13, By: Gfw, IP: [172.16.1.73]

L2: highest possible interest rateif i start 72t in one week, can max out interest rate at 5.4%?2006-02-02 15:31, By: greg, IP: [69.222.136.126]

L2: highest possible interest rateHi,
The following IRS documents showthe 120% AFRMid-term numbers for Dec 05,
Jan 06 and Feb 06. Other months can be found:
http://www.irs.gov/taxpros/lists/0,,id=98042,00.html

http://www.irs.gov/pub/irs-drop/rr-05-77.pdf
Mid-term – Dec 05
12 mo 6 mo 3 mo 1 moAFR 4.52% 4.47% 4.45% 4.43%110% AFR 4.98% 4.92% 4.89% 4.87%120% AFR 5.43% 5.36% 5.32% 5.30%130% AFR 5.89% 5.81% 5.77% 5.74%150% AFR 6.82% 6.71% 6.65% 6.62%175% AFR 7.97% 7.82% 7.75% 7.70%
http://www.irs.gov/pub/irs-drop/rr-06-04.pdf
Mid-term – Jan 06 12 mo 6 mo 3 mo 1 mo
AFR 4.48% 4.43% 4.41% 4.39%110% AFR 4.93% 4.87% 4.84% 4.82%120% AFR 5.39% 5.32% 5.29% 5.26%130% AFR 5.84% 5.76% 5.72% 5.69%150% AFR 6.76% 6.65% 6.60% 6.56%175% AFR 7.90% 7.75% 7.68% 7.63%
http://www.irs.gov/pub/irs-drop/rr-06-07.pdf
Mid-term – Feb 06 12 mo 6 mo 3 mo 1 moAFR 4.40% 4.35% 4.33% 4.31%110% AFR 4.85% 4.79% 4.76% 4.74%120% AFR 5.29% 5.22% 5.19% 5.16%130% AFR 5.74% 5.66% 5.62% 5.59%150% AFR 6.64% 6.53% 6.48% 6.44%175% AFR 7.75% 7.61% 7.54% 7.49%
If I start 72t distributions in March, I assume I can use either the 5.39% number from Jan or the 5.29% in Feb. If I start distributions before March then I assume I can still use the 5.43% number? Can I still use the annual/12 monumber (i.e 5.43% for Dec 05) even though I am setting up a monthly distrubtion? or do I have to use the 1 mo number (5.30% for Dec 05).
Thanks for your help
2006-02-07 22:54, By: dld, IP: [24.32.37.113]