Applicable Federal Rates · January 2009
Applicable Federal Rates for January 2009
Every rate the IRS published for January 2009 in Rev. Rul. 2009-1: the short-, mid- and long-term AFR at four compounding periods, the multiples, the adjusted AFR, and the § 7520 rate. The 120% mid-term row is worked below the table.
In January 2009 the mid-term AFR was 2.06% and 120% of it was 2.48% (annual compounding), so a 72(t)/SEPP payment beginning in either of the two following months could use up to the greater of 5% and 2.48%. The § 7520 rate for the month was 2.4%.
| Rate | Annual | Semiannual | Quarterly | Monthly |
|---|---|---|---|---|
| Short-term (3 years or less) | ||||
| AFR | 0.81% | 0.81% | 0.81% | 0.81% |
| 110% AFR | 0.89% | 0.89% | 0.89% | 0.89% |
| 120% AFR | 0.97% | 0.97% | 0.97% | 0.97% |
| 130% AFR | 1.05% | 1.05% | 1.05% | 1.05% |
| Mid-term (over 3, up to 9 years) | ||||
| AFR | 2.06% | 2.05% | 2.04% | 2.04% |
| 110% AFR | 2.27% | 2.26% | 2.25% | 2.25% |
| 120% AFR | 2.48% | 2.46% | 2.45% | 2.45% |
| 130% AFR | 2.69% | 2.67% | 2.66% | 2.66% |
| 150% AFR | 3.10% | 3.08% | 3.07% | 3.06% |
| 175% AFR | 3.62% | 3.59% | 3.57% | 3.56% |
| Long-term (over 9 years) | ||||
| AFR | 3.57% | 3.54% | 3.52% | 3.51% |
| 110% AFR | 3.93% | 3.89% | 3.87% | 3.86% |
| 120% AFR | 4.30% | 4.25% | 4.23% | 4.21% |
| 130% AFR | 4.65% | 4.60% | 4.57% | 4.56% |
| Term | Annual | Semiannual | Quarterly | Monthly |
|---|---|---|---|---|
| Short-term adjusted AFR | 1.81% | 1.80% | 1.80% | 1.79% |
| Mid-term adjusted AFR | 3.45% | 3.42% | 3.41% | 3.40% |
| Long-term adjusted AFR | 5.49% | 5.42% | 5.38% | 5.36% |
| Adjusted federal long-term rate (§ 382) | 5.49% |
| Long-term tax-exempt rate (§ 382; highest of this and the prior two months) | 5.49% |
| § 7520 rate (annuities, life estates, remainders) | 2.4% |
Source: IRS Rev. Rul. 2009-1, Tables 1, 2, 3 and 5 (PDF on irs.gov). Percentages are shown as the ruling prints them; nothing here is rounded or derived except the worked lines below, which are labelled as such. Rates apply to the calendar month named, under IRC § 1274(d); which month governs a given instrument depends on the Code section that uses it.
How the 120% mid-term rate is derived
The IRS applies each multiple to the semiannual mid-term AFR, then converts that semiannual rate to the other compounding periods. Multiplying the annual figure by 1.2 does not reproduce the published table; this does, within 0.01 percentage points, in every ruling since January 2000.
The § 7520 rate is the annual 120% mid-term figure rounded to the nearest 0.2%, with a tie rounding up: 2.48% → 2.4%, which is what the ruling publishes.
What these rates are for
IRC § 1274(d) requires the IRS to publish the applicable federal rates every month: the short-term rate for instruments of three years or less, the mid-term rate for over three and up to nine years, and the long-term rate beyond that, each set from the average market yield on outstanding U.S. Treasury obligations of comparable maturity. The multiples serve other Code sections: 120% of the mid-term rate caps a 72(t)/SEPP fixed-amortization or annuitization payment (Notice 2022-6) and, rounded to 0.2%, is the § 7520 rate used to value annuities, life estates and remainders; the 110%, 130%, 150% and 175% rows feed § 42, § 382, § 467 and § 468 computations. The adjusted AFR in Table 2 is the § 1288 rate for tax-exempt obligations.
Informational only, not tax, legal or financial advice. Confirm the figure against the linked ruling before relying on it.
Last reviewed: November 2026 · snapshot built 2026-10-26 from irs.gov.
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