72(t) SEPP calcuation
Please confirm what Federal interest rate should be used to calculate a 72(t) payment for a SEPP distribution.
I’m looking at Rev.Rul 2021-23 and not sure if it is TABLE 1 – Applicable Federal Rates (AFR) for December 2021 – which lists several Short-Term, Mid-Term, and Long-Term rates.
or…TABLE 2 which lists Adjusted AFR for December 2021 – Short-Term, Mid-Term, and Long-term.
Also, is one required to make the calculation entering a spouse’s birthdate if married, or can one make the calculation as single even if married?
Thanks,
Permalink Submitted by Alan - IRA critic on Mon, 2021-11-22 00:39
Table I applies (1.52% rate for December, however the Dec rates cannot be used for plans starting prior to 1/1/2022. The highest rate for a December plan is the Nov rate. A plan can use the single calculation whether married or not, as it produces a higher distribution than joint.