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2024
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 |
|---|---|
| 11/24 | 4.45 |
| 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
November 1, 2024
The IRS has published the 2025 IRS COLA limits for Traditional and Roth IRAs and other retirement plans in IRS Notice 2024-80. Read and share Overview of IRAs 2025 to learn more.
July 19, 2024
The Internal Revenue Service (IRS) released final regulations on required minimum distributions (RMDs). The key takeaway is, starting in 2025, RMDs are mandatory during a Designated Beneficiary’s (DB) 10-Year Term if the IRA owner died on or after their required beginning date (RBD). These regulations affect anyone who inherited an IRA from someone who died after 2019. Additionally, the IRS published proposed regulations related to these final regulations, primarily concerning spouse elections under Section 327.
July 14, 2023
The IRS waived the excise tax, effectively making RMDs necessary in 2023.
May 23, 2023
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 technical FINAL 23 May 2023.pdf
October 13, 2022
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.
October 7, 2022
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.
So, yes there are Inherited Required Minimum Distributions, but there doesn’t seem to be any penalty or consequence for DBs not taking 2021 or 2022 Inherited RMDs.
We have incorporated this update throughout our software.
June 1, 2022
Software has now been updated to reflect January’s Proposed Rules reflected in 2022-02522 Federal Register Release.