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Applicable Federal Rates (AFRs)
120% of AFRs have been in a cycle of high volatility. Over the last 4 years, they’ve reached levels that are in excess of 1,000% of the low 2020 value and most recently have been jumping up and down by 10 to 20% with highs that have almost reached 6.0%
| Month | Rate |
|---|---|
| 10/24 | 4.45 |
| 9/24 | 4.84 |
| 8/24 | 5.22 |
| 7/24 | 5.4 |
| 6/24 | 5.61 |
| 5/24 | 5.31 |
| 4/24 | 5.17 |
| 3/24 | 4.97 |
| 2/24 | 4.79 |
| 1/24 | 5.25 |
| 12/23 | 5.79 |
| 11/23 | 5.65 |
| 10/23 | 5.33 |
| 9/23 | 5.04 |
| 8/23 | 4.92 |
| 7/23 | 4.62 |
| 6/23 | 4.28 |
| 5/23 | 4.3 |
| 4/23 | 4.99 |
| 3/23 | 4.45 |
| 2/23 | 4.59 |
| 1/23 | 4.62 |
| 12/22 | 5.14 |
| 11/22 | 4.78 |
| 10/22 | 3.94 |
| 9/22 | 3.52 |
| 8/22 | 3.8 |
| 7/22 | 3.59 |
| 6/22 | 3.52 |
| 5/22 | 3.01 |
| 4/22 | 2.24 |
| 3/22 | 2.09 |
| 2/22 | 1.69 |
| 1/22 | 1.63 |
| 12/21 | 1.52 |
| 11/21 | 1.3 |
| 10/21 | 1.09 |
| 9/21 | 1.03 |
| 8/21 | 1.2 |
| 7/21 | 1.2 |
| 6/21 | 1.22 |
| 5/21 | 1.28 |
| 4/21 | 1.07 |
| 3/21 | 0.74 |
| 2/21 | 0.67 |
| 1/21 | 0.62 |
| 12/20 | 0.58 |
| 11/20 | 0.47 |
| 10/20 | 0.46 |
| 9/20 | 0.42 |
| 8/20 | 0.49 |
| 7/20 | 0.54 |
| 6/20 | 0.52 |
| 5/20 | 0.7 |
| 4/20 | 1.19 |
| 3/20 | 1.83 |
| 2/20 | 2.1 |
| 1/20 | 2.03 |
| 12/19 | 2.03 |
| 11/19 | 1.91 |
| 10/19 | 1.81 |
| 9/19 | 2.13 |
| 8/19 | 2.24 |
| 7/19 | 2.5 |
| 6/19 | 2.86 |
| 5/19 | 2.85 |
| 4/19 | 3.06 |
| 3/19 | 3.1 |
| 2/19 | 3.15 |
| 1/19 | 3.47 |
| 12/18 | 3.69 |
| 11/18 | 3.65 |
| 10/18 | 3.4 |
| 9/18 | 3.44 |
| 8/18 | 3.37 |
| 7/18 | 3.45 |
| 6/18 | 3.44 |
| 5/18 | 3.23 |
| 4/18 | 3.27 |
| 3/18 | 3.08 |
| 2/18 | 2.78 |
| 1/18 | 3.47 |
| 12/17 | 3.69 |
| 11/17 | 3.65 |
| 10/17 | 2.22 |
| 9/17 | 2.33 |
| 8/17 | 2.34 |
| 7/17 | 2.27 |
| 6/17 | 2.35 |
| 5/17 | 2.45 |
| 4/17 | 2.55 |
| 3/17 | 2.47 |
| 2/17 | 2.53 |
| 1/17 | 2.36 |
| 12/16 | 1.76 |
| 11/16 | 1.61 |
Click here to visit the IRS web page for Applicable Federal Rates (AFRs)
https://www.irs.gov/applicable-federal-rates
The IRS waived the excise tax for Inherited IRAs with RMDs under the 10-year rule, effectively making RMDs unnecessary in 2024.
The IRS waived the excise tax for Inherited IRAs with RMDs under the 10-year rule, effectively making RMDs unnecessary in 2023.
https://www.irs.gov/pub/irs-drop/n-23-54.pdf
Letter from Secretary of the Treasury Janet Yellen to Congress on 5-23-23
Provisions regarding the SECURE 2.0 Act of 2022
Letter from the four corners on SECURE 2.0 technicals FINAL 23 May 2023.pdf
2023 Social Security 8.7% increase announced. 2023 Tax Brackets are going up just over 7%. Interesting. So, if your income just matches inflation (~8-9…..%), you will be paying more in taxes.
Once again, significant changes have been announced in IRS publication:
https://www.irs.gov/pub/irs-drop/n-22-53.pdf
Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) intend to issue final regulations related to required minimum distributions (RMDs) under section 401(a)(9) of the Internal Revenue Code (Code) that will apply no earlier than the 2023 distribution calendar year. In addition, this notice provides guidance related to certain provisions of section 401(a)(9) that apply for 2021 and 2022.
Simply stated it seems that the RMD requirements are still there, but it looks like no excise taxes, as defined in Section 4974(b), will be applicable to Inherited IRA for Designated Beneficiaries (DBs) under the 10-year rule for RMDs not taken in 2021 and 2022. Also, if excise tax was paid in 2021 on RMDs not taken the excise tax is refundable.
We have incorporated this update incorporate throughout our software.
Software has now been updated to reflect January’s Proposed Rules reflected in 2022-02522 Federal Register Release.