IRS Notice 2022-6 defines the maximum “interest rate” to be the greater of 5% and the highest applicable federal midterm rate of the two months prior to the first distribution. Answering yes to this question causes the program to fill in the “reasonable interest rate” automatically, disabling that input field. If no federal midterm rate has been entered, the program displays a message and the “Use Maximum Interest Rate” input is set to “No.”
Rev. Rul. 2002-62 defines the maximum “reasonable interest rate” to be the highest applicable federal midterm rate of the two months prior to the first distribution. Answering yes to this question causes the program to fill in the “reasonable interest rate” automatically, disabling that input field. If no federal midterm rate has been entered, the program displays a message and the “Use Maximum Interest Rate” input is set to “No.”
