Interest Rates Used to Calculate Early Withdrawal
April 20th, 2008
What interest rate may be used for the 72t Calculator?
The interest rate that may be used in a 72 t calculator is any interest rate that is not more than 120% of the federal mid-term rate for either of the two months immediately preceding the month in which the distribution begins.
| Month | 120% of the Federal Mid-term Rate |
| March | 4.01% |
| April | 3.80% |
| May | 3.81% |
| June | 4.67% |
| July | 4.94% |
| August | 4.81% |
| September | 4.61% |
| October | 4.36% |
| November | 4.26% |
| December | 4.28% |
| January | 4.53% |
| February | 4.60% |
Example:
After consulting the 72t Early Retirement rules, you are ready to begin 72t Distributions in October. You may choose either the August or September rate or a lower rate for computing the distribution under the amortization or annuitization methods.
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Tags: annuitization, interest rates, interest rates calculate early withdrawal