IRS issues April, May 2018 weighted average, yield curve, and segment rates

The IRS has issued the 30-year Treasury interest rates, yield curve and segment rates, and minimum value segment rates for April and May 2018.

Treasury securities rates.

The 30-year Treasury securities rate for April 2018 is 3.07%. The 30-year Treasury weighted average interest rate, for plan years beginning in May 2018 is 2.85%, with a 90% to 105% permissible range of 2.56% to 2.99%.

Yield curve and segment rates.

The spot first, second, and third segment rates for April 2018 are, respectively, 2.99%, 4.04%, and 4.43%.
The 24-month average segment rates must be adjusted pursuant to Code Sec. 430(h)(2)(C)(iv) by the applicable percentages of the corresponding 25-year average segment rates. For plan years beginning before 2021, the applicable minimum percentage is 90% and the applicable maximum percentage is 110%. The 25-year average segment rates for plan years beginning in 2016, 2017, and 2018 were published in IRS Notices 2015-61, 2016-54, and 2017-50, respectively.
The three 24-month average corporate bond segment rates applicable for May 2018 without adjustment for the 25-year average segment rate limits are: 2.00% for the first segment, 3.68% for the second segment, and 4.44% for the third segment.
The 24-month averages applicable for May 2018 adjusted for the applicable percentages of the corresponding 25-year average segment rates, for plan years beginning in 2017, are as follows: 4.16% for the first segment, 5.72% for the second segment, and 6.48% for the third segment. The 24-month averages applicable for May 2018 adjusted for the applicable percentages of the corresponding 25-year average segment rates, for plan years beginning in 2018, are as follows: 3.92% for the first segment, 5.52% for the second segment, and 6.29% for the third segment.

Minimum present value segment rates.

The minimum present value segment rates determined for April 2018 are: 2.99% for the first segment, 4.04% for the second segment, and 4.43% for the third segment.

Source: IRS Notice 2018-53, I.R.B. 2018-22, May 29, 2018.
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