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May Full Funding Limitation Rates Announced

MAY 24, 1999

Notice 99-28; 1999-21 IRB 8

DATED MAY 24, 1999
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Area/Tax Topics
  • Index Terms
    pension plans, funding standards, minimum
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 1999-18403 (1 original page)
  • Tax Analysts Electronic Citation
    1999 TNT 99-15
Citations: Notice 99-28; 1999-21 IRB 8

 

=============== SUMMARY ===============

 

The Service has announced in Notice 99-28 that the weighted average interest rate used to calculate plan liability under section 412(c)(7) is 6.07 percent for plan years beginning in May 1999. Further, the 90 percent to 105 percent permissible range of interest rates is 5.46 to 6.38 percent, and the 90 percent to 110 percent permissible range of interest rates is 5.46 to 6.68 percent.

 

=============== FULL TEXT ===============

 

[1] Notice 88-73 provides guidelines for determining the weighted average interest rate and the resulting permissible range of interest rates used to calculate current liability for the purpose of the full funding limitation of section 412(c)(7) of the Internal Revenue Code as amended by the Omnibus Budget Reconciliation Act of 1987 and as further amended by the Uruguay Round Agreements Act, Pub. L. 103-465 (GATT).

[2] The average yield on the 30-year Treasury Constant Maturities for April 1999 is 5.55 percent.

[3] The following rates were determined for the plan years beginning in the month shown below.

                                  90% to 105%     90% to 110%

 

                    Weighted      Permissible     Permissible

 

Month     Year       Average         Range           Range

 

_____     ____      ________      ____________    ___________

 

 

May       1999        6.07        5.46 to 6.38    5.46 to 6.68

 

 

[4] Written comments on these interim procedures should be submitted to the Service by June 30, 1999.
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Area/Tax Topics
  • Index Terms
    pension plans, funding standards, minimum
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 1999-18403 (1 original page)
  • Tax Analysts Electronic Citation
    1999 TNT 99-15
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