72(t) interest rate
I am aware of the three IRS approved methods to calcuate 72(t) payments. It’s my understanding an indviviual can use another (non sanctioned) method as long as the rate is “reasonable”
Has the IRS opined on what they deem “reasonable”? Are there any PLRs, articles, columns etc that I could reference?
Thank you
Permalink Submitted by Alan - IRA critic on Wed, 2017-10-25 20:02
As a result of RR 2002-62, the max interest rate is the 120% mid term rate, although the taxpayer can use any interest rate less than the max rate. The wide open interest rate environment essentially ended at the end of 2002.