Current Plan Liability Rates Set for January 2019 (Notice 2019-13)

The IRS has released the interest rates for pension plan years beginning in January 2019, including:

  • the 30-year Treasury bond weighted average interest rate,
  • the unadjusted segment rates,
  • the adjusted rates, and
  • the minimum present value segment rates.

Corporate Bond Rate

The three 24-month average corporate bond segment rates applicable for January 2019 (without adjustment for the 25-year average segment rate limits):

– 2.55 for the first segment rate,

– 3.93 for the second, and

– 4.49 for the third.

January 2019 Adjusted Segment Rates

The January 2019 adjusted segment rates for plan years beginning in 2017 are:

  • 4.16 for the first,
  • 5.72 for the second, and
  • 6.48f or the third.

The rates for plan years beginning in 2018 are:

  • 3.92 for the first segment,
  • 5.52 for the second, and
  • 6.29 for the third.

The rates for plan years beginning in 2019 are:

  • 3.74 for the first segment,
  • 5.35 for the second, and
  • 6.11 for the third.

30-Year Treasury Weighted Average

For plan years beginning in January 2019, the 30-year Treasury weighted average securities rate is 2.92, with a permissible range of 2.63 to 3.06.

The rate of interest on 30-year Treasury securities for December 2018 is 3.10 percent.

The minimum present value segment rates under Code Sec. 417(e)(3)(D) for December 2018 are:

  • 3.38 for the first segment rate,
  • 4.32 for the second, and
  • 4.69 for the third.

Notice 2019-13

 

Login to read more tax news on CCH® AnswerConnect or CCH® Intelliconnect®.

Not a subscriber? Sign up for a free trial or contact us for a representative.

AUTHOR

CCHTaxGroup

All stories by: CCHTaxGroup