Posts Tagged ‘interest rates’
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.
Posted in Early Withdrawal | 
Tags: annuitization, interest rates, interest rates calculate early withdrawal | 
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