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Interest rate to use

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Last Updated On
ByJeff

L1: Interest rate to useI’m about to start my SEPP and I wanted to make sure I haven’t misread the information about the interest rate that I’m allowed to use. If I start today, I should be able to use the Sept. rate or the Oct. rate, right? I find that 120% of the Sept. mid-term rate is 3.45%, which is higher than the corresponding Oct. rate, so I will use 3.45%. Do I have that right?2009-11-25 15:26, By: Jeff, IP: [96.32.75.245]
L2: Interest rate to useYou have it right if the first distribution from your SEPPoccurs prior to December 1.2009-11-25 15:39, By: Gfw, IP: [216.80.125.206]

L3: Interest rate to useYes, time is of the essence in this situation. Your IRA custodian would have to process the distribution prior to 12/1, but you do not necessarily have to receive it in November. Payment date referred to in 2002-62 equals the distribution date, not the date of taxpayer receipt. That also squares up with the 1099R form generated in a year end distribution. 2009-11-25 19:22, By: Alan S., IP: [24.116.165.60]

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