Wednesday, July 22, 2009

Mid-Term AFR Rises for August

The Treasury has published the Mid-Term Applicable Federal Rate for August. The rate now stands at 2.80%, up slightly from 2.76%.

This rate is significant because it is used in the calculation of IRS 72(t) payments. In this context, a rising rate generally allows someone to set a higher initial 72(t) withdrawal amount, provided it is prudent and suitable to do so.

Here is a link to the IRS Revenue Ruling listing the new rate.

For more information on how this rate might impact you, please call Harris Financial Group at (800) 281-3980.