L1: October AFROctober, 2009… 120% Mid-Term = 3.20%, Applicable Federal Rates for 72(t) and 72(q) distributions. Click HERE
Sinceearly this year we have been a little off on our monthly estimate of the published rate. When we saw the trend, we started looking at historical data and decided that the weighting used to determine the 120% AFR rate changed in about May.
After playing with theformulas and changing the weighting, weapppear to be back on target with our projected(revised formula). Our rate and the published rate are both at 3.20% – we’ll have to wait and see what happens next month.2009-09-18 20:15, By: Gfw, IP: [126.96.36.199]
L2: October AFRI started my SEPP distribution using the 3.37% midterm interest ratethis site published for September ’09.Now that the actualpublished rate is 3.20%, willthe IRS penalize me for using the 3.37% asthe mid-term instead of the actual 3.20% rate? I have not received the first SEPP payout yetso how do Icorrect thisbefore the first payout is processed? 2009-09-19 01:04, By: Doc, IP: [188.8.131.52]
L3: October AFRDoc, good news.
You have no problem here. The 3.37 rate was the actual August rate, which you can use for either Sept or Oct starting dates. It was never an estimate, but was based on the highest rate actually published for July or August. The higher of July or August is the max rate to be used for Sept starting distributions.
Just show on your documentation that you used the August published rate. You are fine and no correction is needed.2009-09-19 03:00, By: Alan S., IP: [184.108.40.206]