reasonable interest rate
L1: reasonable interest rateYou may use any interest rate that is not more than 120% of the federal mid-term rate published in IRS revenue rulings for either of the two months immediately before distributions begin
What does “either” mean? does it mean both?
GJN2011-06-18 22:53, By: gjn, IP: [184.108.40.206]
L2: reasonable interest rate”Either” means that you cannot exceed the higher of those two rates.
Since the first month of the two drops off a month before the second month, you have planning opportunities. If the second month is higher, you effectively have an extra month to plan and still use that higher rate.2011-06-18 23:54, By: Alan S., IP: [220.127.116.11]
L2: reasonable interest rateThanks Alan!
GJN2011-06-19 00:20, By: gjn, IP: [18.104.22.168]