dmb Posted April 11, 2014 Posted April 11, 2014 Does anyone know who far out (decimal places) the MAP-21 rates go before being rounded (after applying the corridor) and are they rounded to nearest or up or down? Thanks.
david rigby Posted April 11, 2014 Posted April 11, 2014 IRS uses 2 decimal places. For example, the unrounded third segment for 2013 is 7.9472. This is rounded (first) to 7.95. Then the corridor: 7.95 x 85% = 6.7575 round to 6.76% http://www.irs.gov/Retirement-Plans/Funding-Yield-Curve-Segment-Rates However, it's possible the IRS uses a different sequence of rounding, still using 2 decimals at the end. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
My 2 cents Posted April 11, 2014 Posted April 11, 2014 Looking at the example above, you get 6.76% whether you round before multiplying by 85% or not. 7.9472 X 85% = 6.7551 which also rounds to 6.76%. You have to use whatever the IRS publishes in any event. You don't get to grow your own. Always check with your actuary first!
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