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January 2019 SEPP/72(t)/Applicable Federal Rates

Last Updated December 21, 2018

The IRS has issued the Applicable Federal Rates for January 2019, in Revenue Ruling 2019-03.  Among other things, this rate is used to calculate 72(t) Payments/SEPPs.

When calculating a SEPP using the annuitization or amortization methods, an assumed rate of interest that is not more than 120 percent of the federal mid-term rate (determined in accordance with IRC § 1274(d) for either of the two months immediately preceding the month in which the distribution begins) can be used. 

Mid-term Rates for this month

 

 

Period for Compounding

 

                                                           

 

Annual

Semiannual

Quarterly

Monthly

120% AFR

3.47%

3.44%

3.43%

3.42 %

 

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