My Prediction Of The June MT/AFR

L1: My Prediction Of The June MT/AFRNow that the reporting period is over; I predict the June 120% MT/AFR will be (drum roll please) 4.67%.
We will know in about 10 days.
TheBadger
wjstecker@wispertel.net
2004-05-15 11:01, By: TheBadger, IP: [66.250.23.21]

L2: My Prediction Of The June MT/AFRThanks to your help, I came out with 4.62% – I changed the weighting on the 3/10 year a little- but we both should be close – I think the general trend is just as important as the final rate since all we can do now is wait for the IRS.
My AFR Estimator page is at http://72t.net/EstAfrRates.aspx- we automatically read the treasury site at about 6pm CT each evening.2004-05-15 11:11, By: Gfw, IP: [172.16.1.71]

L2: My Prediction Of The June MT/AFRLoser buys the other dinner????
TheBadger
2004-05-15 11:26, By: TheBadger, IP: [66.250.23.21]

L2: My Prediction Of The June MT/AFRNext time you are in Chicago 2004-05-15 11:49, By: Gfw, IP: [172.16.1.71]

L2: My Prediction Of The June MT/AFRHi Guys,
this is for both you & GFW…
I’m new to this site (tho I already love it!) and am working on setting up a 72(t) SEPP (tired of working for the Man, just gonna do software/systems consulting & programming when I feel like it and/or need some extra money!)
I just wondered where your numbers are coming from since the published 120% MT/AFR rates for Apr/May were 3.81/3.80% so dont see how ya get 4.6% (unlessya meant long term rate??)
if not, should I wait another month or so to ‘lock in’ the distribution amounts using the much higher rates so as to get more monthly income?(w/o the 10% penalty)
Thanx!
–GeorgeMon–2004-05-19 14:57, By: GeorgeMon, IP: [24.165.247.156]

L2: My Prediction Of The June MT/AFRIf you want a little higher payment, I might just wait – the IRS should be publishing the official Junerate (120% Mid-Term) within the next 3-5 days.2004-05-19 15:13, By: Gfw, IP: [172.16.1.71]

L2: My Prediction Of The June MT/AFRMr Weiss,
thanx for your quick response!
1 more dumb question (told ya I was new at this) and I’ll leave ya alone…
since the wording is ‘not to exceed EITHER of previous 2 months 120% MT/AFR’ dont I have to wait (& hope) till Jul published MT/AFR to take advantage of the higher than 3.80% rates from Apr/May???
I mean, May of 3.81 and June of 4.60 doesnt really help me, still would have to use the 3.81 in order NOT to get hit with penalty later…
thanx!
–GeorgeMon—
2004-05-21 16:30, By: GeorgeMon, IP: [24.165.247.156]

L2: My Prediction Of The June MT/AFRGary or Badger:
As youanswer GeorgeMon’s latest question, please incorporate my question.
Does the term ‘…not to exceed the 120% rate…’ mean that I can go down as low as I wish?
My situation involves coordinating multipleincome sources for a family, but we need to do a SEPP for a much smaller amount of distribution from the one IRAthan using the 120% factor will produce. In fact I would like to use somethingin the neighborhood of 2.5% which is well under even the 100% factor. I believe the rules allow me to go as low as desired and only restrict the up side.
Jim2004-05-21 16:59, By: Jim, IP: [68.225.115.136]

L2: My Prediction Of The June MT/AFRThe language in Rev. Rule 2002-62 says “not more than 120%…”. Thereore, and this is consistent with rulings that preceed Rev. Rule 200-62, any interest rate that is less than 120% of the mid-term applicable federal rate is aceptable; right down to zero.
That being said, I would still advocate using the 120% of the mid-term rate anyway. To the extent that that interest rate provides a distribution larger than desired; then, instead, I would split the account into at least ywo accounts holding the second on theside for other purposes.
Lastly, the 1st day that the June rate can be used is on a July 1, 2004 distribution.
TheBadger
wjstecker@wispertel.net
2004-05-21 18:14, By: TheBadger, IP: [66.250.23.21]

L2: My Prediction Of The June MT/AFRBadger,
did you have any info on my question about the wording ‘not to exceed either of previous 2 months 120%MT/AFR’ ?
seems like if I used Jun 4.6% to start a Jul 1 distribution then that would exceed the May 3.81% published rate and leave me subject to penalty down the road…
any advice is Greatly appreciated!
–GeorgeMon–2004-05-27 07:47, By: GeorgeMon, IP: [24.165.247.156]

L2: My Prediction Of The June MT/AFRThe appropriate wording is… The interest rate that may be used is any interest rate that is not more than 120 percent of the federal mid-term rate (determined in accordance with 1274(d) for either of the two months immediately preceding the month in which the distribution begins).

Seems pretty clear that you can use the higer of the 2 rates.2004-05-27 08:19, By: Gfw, IP: [172.16.1.71]