Appendix C - Appendix C to Part 4022—Lump Sum Interest Rates for Private-Sector Payments
[In using this table:
(1) To determine the applicable rate set for any given month (month x), use the applicable 12-year rate for the second preceding month (month x−2) to find the corresponding rate set. The applicable 12-year rate for the second preceding month is the 12-year rate from the corporate bond yield curve described in section 430(h)(2)(D)(ii) of the Code determined without regard to 24-month averaging for the second month preceding the month of the desired applicable rate set.
(2) For benefits for which the participant or beneficiary is entitled to be in pay status on the valuation date, the immediate annuity rate shall apply.
(3) For benefits for which the deferral period is y years (where y is an integer and 0 < y ≤ 7), interest rate i
(4) For benefits for which the deferral period is y years (where y is an integer and 7 < y ≤ 15), interest rate i
(5) For benefits for which the deferral period is y years (where y is an integer and y > 15), interest rate i
For Plans With a Valuation Date On or After January 1, 2021
| Applicable 12-year rate for month x−2
(percent) | Applicable rate set for month x | Immediate
annuity rate (percent) | Deferred annuity rates
(percent) | i | i | i | Below 3.18 | 0.00 | 4.00 | 4.00 | 4.00 | 3.18 to 3.40 | 0.25 | 4.00 | 4.00 | 4.00 | 3.41 to 3.63 | 0.50 | 4.00 | 4.00 | 4.00 | 3.64 to 3.87 | 0.75 | 4.00 | 4.00 | 4.00 | 3.88 to 4.10 | 1.00 | 4.00 | 4.00 | 4.00 | 4.11 to 4.34 | 1.25 | 4.00 | 4.00 | 4.00 | 4.35 to 4.57 | 1.50 | 4.00 | 4.00 | 4.00 | 4.58 to 4.81 | 1.75 | 4.00 | 4.00 | 4.00 | 4.82 to 5.04 | 2.00 | 4.00 | 4.00 | 4.00 | 5.05 to 5.28 | 2.25 | 4.00 | 4.00 | 4.00 | 5.29 to 5.51 | 2.50 | 4.00 | 4.00 | 4.00 | 5.52 to 5.75 | 2.75 | 4.00 | 4.00 | 4.00 | 5.76 to 5.98 | 3.00 | 4.00 | 4.00 | 4.00 | 5.99 to 6.22 | 3.25 | 4.00 | 4.00 | 4.00 | 6.23 to 6.46 | 3.50 | 4.00 | 4.00 | 4.00 | 6.47 to 6.69 | 3.75 | 4.00 | 4.00 | 4.00 | 6.70 to 6.93 | 4.00 | 4.00 | 4.00 | 4.00 | 6.94 to 7.16 | 4.25 | 4.00 | 4.00 | 4.00 | 7.17 to 7.40 | 4.50 | 4.00 | 4.00 | 4.00 | 7.41 to 7.64 | 4.75 | 4.00 | 4.00 | 4.00 | 7.65 to 7.87 | 5.00 | 4.25 | 4.00 | 4.00 | 7.88 to 8.11 | 5.25 | 4.50 | 4.00 | 4.00 | 8.12 to 8.35 | 5.50 | 4.75 | 4.00 | 4.00 | 8.36 to 8.58 | 5.75 | 5.00 | 4.00 | 4.00 | 8.59 to 8.82 | 6.00 | 5.25 | 4.00 | 4.00 | 8.83 to 9.06 | 6.25 | 5.50 | 4.25 | 4.00 | 9.07 to 9.30 | 6.50 | 5.75 | 4.50 | 4.00 | 9.31 to 9.53 | 6.75 | 6.00 | 4.75 | 4.00 | 9.54 to 9.78 | 7.00 | 6.25 | 5.00 | 4.00 | 9.79 to 10.02 | 7.25 | 6.50 | 5.25 | 4.00 | Above 10.02 | 7.50 | 6.75 | 5.50 | 4.00 |
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