Notice 2026-2

This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under § 417(e)(3), and the 24-month average segment rates under § 430(h)(2) of the Internal Revenue Code. In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I).

YIELD CURVE AND SEGMENT RATES

Section 430 specifies the minimum funding requirements that apply to single-employer plans (except for CSEC plans under § 414(y)) pursuant to § 412. Section

430(h)(2) specifies the interest rates that must be used to determine a plan’s target normal cost and funding target. Under this provision, present value is generally determined using three 24-month average interest rates (“segment rates”), each of which applies to cash flows during specified periods. To the extent provided under § 430(h)(2)(C)(iv), these segment rates are adjusted by the applicable percentage of the 25-year average segment rates for the period ending September 30 of the year preceding the calendar year in which the plan year begins. ¹ However, an election may be made under § 430(h)(2)(D) (ii) to use the monthly yield curve in place of the segment rates.

Section 1.430(h)(2)-1(d) provides rules for determining the monthly corporate bond yield curve, ² and § 1.430(h) (2)-1(c) provides rules for determining the 24-month average corporate bond segment rates used to compute the target normal cost and the funding target. Consistent with the methodology specified in § 1.430(h)(2)-1(d), the monthly corporate bond yield curve derived from November 2025 data is in Table 2025-11 at the end of this notice. The spot first, second,

and third segment rates for the month of November 2025 are, respectively, 4.07, 5.15, and 6.01. The 24-month average segment rates determined under § 430(h)(2)(C)(i) through (iii) must be adjusted pursuant to § 430(h)(2)(C)(iv) to be within the applicable minimum and maximum percentages of the corresponding 25-year average segment rates. Those percentages are 95% and 105% for plan years beginning in 2024, 2025 and 2026. For this purpose, any 25-year average segment rate that is less than 5% is deemed to be 5%. The 25-year average segment rates for plan years beginning in 2024, 2025 and 2026 were published in Notice 2023-66, 202340 I.R.B. 992, Notice 2024-67, 2024-41 I.R.B. 726 and Notice 2025-47, 2025-40 I.R.B. 441, respectively.

24-MONTH AVERAGE CORPORATE BOND SEGMENT RATES

The three 24-month average corporate bond segment rates applicable for December 2025 without adjustment for the 25-year average segment rate limits are as follows:

24-Month Average Segment Rates Without 25-Year Average Adjustment Applicable Month First Segment Second Segment Third Segment December 2025 4.61 5.26 5.70

The adjusted 24-month average segment rates set forth in the chart below reflect § 430(h)(2)(C)(iv) of the Code. The

24-month averages applicable for December 2025, adjusted to be within the applicable minimum and maximum percent

ages of the corresponding 25-year average segment rates in accordance with § 430(h) (2)(C)(iv), are as follows:

Adjusted 24-Month Average Segment Rates For Plan Years

Beginning In Applicable Month First Segment Second Segment Third Segment

2024 December 2025 4.75 5.26 5.70

2025 December 2025 4.75 5.26 5.70

2026 December 2025 4.75 5.25 5.70

1 Pursuant to § 433(h)(3)(A), the third segment rate determined under § 430(h)(2)(C) is used to determine the current liability of a CSEC plan (which is used to calculate the minimum amount of the full funding limitation under § 433(c)(7)(C)).

2 For months before February 2024, the monthly corporate bond yield curve was determined in accordance with Notice 2007-81, 2007-44 I.R.B. 899. Section 1.430(h)(2)-1(d) generally adopts the methodology for determining the monthly corporate bond yield curve under Notice 2007-81 but includes two enhancements to take into account subsequent changes in the bond market. Those enhancements are described in the preamble to TD 9986 (89 FR 2127).

January 5, 2026 304 Bulletin No. 2026–2

30-YEAR TREASURY SECURITIES INTEREST RATES

Section 431 specifies the minimum funding requirements that apply to multiemployer plans pursuant to § 412. Section 431(c)(6)(B) specifies a minimum amount for the full-funding limitation described in § 431(c)(6)(A), based on the plan’s current liability. Section 431(c) (6)(E)(ii)(I) provides that the interest rate used to calculate current liability for

this purpose must be no more than 5 percent above and no more than 10 percent below the weighted average of the rates of interest on 30-year Treasury securities during the four-year period ending on the last day before the beginning of the plan year. Notice 88-73, 1988-2 C.B. 383, provides guidelines for determining the weighted average interest rate. The rate of interest on 30-year Treasury securities for November 2025 is 4.70 percent. The Service determined this rate as the aver

age of the daily determinations of yield on the 30-year Treasury bond maturing in August 2055 determined each day through November 12, 2025 and the yield on the 30-year Treasury bond maturing in November 2055 determined each day for the balance of the month. For plan years beginning in December 2025, the weighted average of the rates of interest on 30-year Treasury securities and the permissible range of rates used to calculate current liability are as follows:

Treasury Weighted Average Rates For Plan Years Beginning In 30-Year Treasury Weighted Average Permissible Range 90% to 105%

December 2025 4.32 3.89 to 4.54

MINIMUM PRESENT VALUE SEGMENT RATES

In general, the applicable interest rates

under § 417(e)(3)(D) are segment rates computed without regard to a 24-month average. Section 1.417(e)-1(d)(3) provides guidelines for determining the minimum

present value segment rates. Pursuant to that section, the minimum present value segment rates determined for November 2025 are as follows:

Minimum Present Value Segment Rates Month First Segment Second Segment Third Segment November 2025 4.07 5.15 6.01

DRAFTING INFORMATION

The principal author of this notice is Tom Morgan of the Office of Associ

ate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). However, other personnel from the IRS participated in the development

of this guidance. For further information regarding this notice, contact Mr. Morgan at 202-317-6700 or Tony Montanaro at 626-927-1475 (not toll-free calls).

Bulletin No. 2026–2 305 January 5, 2026

Table 2025-11 Monthly Yield Curve for November 2025

Derived from November 2025 Data

Maturity Yield Maturity Yield Maturity Yield Maturity Yield Maturity Yield 0.5 3.98 20.5 5.69 40.5 6.05 60.5 6.18 80.5 6.24 1.0 3.98 21.0 5.71 41.0 6.05 61.0 6.18 81.0 6.24 1.5 3.98 21.5 5.73 41.5 6.06 61.5 6.18 81.5 6.24 2.0 3.99 22.0 5.74 42.0 6.06 62.0 6.18 82.0 6.24 2.5 4.02 22.5 5.76 42.5 6.06 62.5 6.18 82.5 6.24 3.0 4.05 23.0 5.77 43.0 6.07 63.0 6.19 83.0 6.25 3.5 4.10 23.5 5.78 43.5 6.07 63.5 6.19 83.5 6.25 4.0 4.15 24.0 5.79 44.0 6.08 64.0 6.19 84.0 6.25 4.5 4.21 24.5 5.81 44.5 6.08 64.5 6.19 84.5 6.25 5.0 4.27 25.0 5.82 45.0 6.09 65.0 6.19 85.0 6.25 5.5 4.34 25.5 5.83 45.5 6.09 65.5 6.20 85.5 6.25 6.0 4.41 26.0 5.84 46.0 6.09 66.0 6.20 86.0 6.25 6.5 4.48 26.5 5.85 46.5 6.10 66.5 6.20 86.5 6.25 7.0 4.55 27.0 5.86 47.0 6.10 67.0 6.20 87.0 6.25 7.5 4.62 27.5 5.87 47.5 6.10 67.5 6.20 87.5 6.26 8.0 4.69 28.0 5.88 48.0 6.11 68.0 6.20 88.0 6.26 8.5 4.76 28.5 5.88 48.5 6.11 68.5 6.21 88.5 6.26 9.0 4.82 29.0 5.89 49.0 6.11 69.0 6.21 89.0 6.26 9.5 4.89 29.5 5.90 49.5 6.12 69.5 6.21 89.5 6.26 10.0 4.95 30.0 5.91 50.0 6.12 70.0 6.21 90.0 6.26 10.5 5.00 30.5 5.92 50.5 6.12 70.5 6.21 90.5 6.26 11.0 5.06 31.0 5.93 51.0 6.13 71.0 6.21 91.0 6.26 11.5 5.11 31.5 5.94 51.5 6.13 71.5 6.22 91.5 6.26 12.0 5.16 32.0 5.94 52.0 6.13 72.0 6.22 92.0 6.26 12.5 5.21 32.5 5.95 52.5 6.14 72.5 6.22 92.5 6.27 13.0 5.25 33.0 5.96 53.0 6.14 73.0 6.22 93.0 6.27 13.5 5.30 33.5 5.96 53.5 6.14 73.5 6.22 93.5 6.27 14.0 5.34 34.0 5.97 54.0 6.14 74.0 6.22 94.0 6.27 14.5 5.37 34.5 5.98 54.5 6.15 74.5 6.22 94.5 6.27 15.0 5.41 35.0 5.99 55.0 6.15 75.0 6.23 95.0 6.27 15.5 5.44 35.5 5.99 55.5 6.15 75.5 6.23 95.5 6.27 16.0 5.47 36.0 6.00 56.0 6.15 76.0 6.23 96.0 6.27 16.5 5.50 36.5 6.00 56.5 6.16 76.5 6.23 96.5 6.27 17.0 5.53 37.0 6.01 57.0 6.16 77.0 6.23 97.0 6.27 17.5 5.56 37.5 6.02 57.5 6.16 77.5 6.23 97.5 6.27 18.0 5.58 38.0 6.02 58.0 6.16 78.0 6.23 98.0 6.28 18.5 5.61 38.5 6.03 58.5 6.17 78.5 6.24 98.5 6.28 19.0 5.63 39.0 6.03 59.0 6.17 79.0 6.24 99.0 6.28 19.5 5.65 39.5 6.04 59.5 6.17 79.5 6.24 99.5 6.28 20.0 5.67 40.0 6.04 60.0 6.17 80.0 6.24 100.0 6.28

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(4) Qualified farmer . Section 1062(d) (3) defines the term “qualified farmer” as any individual who is actively engaged in farming (within the meaning of 7 U.S.C. §§ 1308-1(b) and (c)).

(5) Acceleration of payment . Section 1062(b)(2)(A) provides that if there is an addition to tax for failure to timely pay any installment required under section 1062, then the unpaid portion of all remaining installments is due on the date of such failure. Additional circumstances, described in section 1062(b)(2)(B) and (C), may also accelerate the due date of unpaid installments.

(6) Election procedures . Section 1062(e) requires that a taxpayer making a section 1062 election include with the return for the taxable year of the qualified sale or exchange a copy of the covenant or other legally enforceable restriction described in section 1062(d)(2)(A)(ii). Forthcoming guidance will provide further instructions on how a taxpayer may properly make a section 1062 election.

.02 Section 6654 . (1) Estimated income tax and liability for addition to tax . Generally, the Code requires taxpayers to pay Federal income taxes as they earn income. To the extent these taxes are not withheld from wages or other income, a taxpayer normally must pay estimated income tax. Individual taxpayers who fail to make a sufficient or timely payment of estimated income tax are liable for an addition to tax under section 6654(a). With some exceptions, section 6654(l)(2) provides that the provisions of section 6654 generally apply to certain estates and trusts.

(2) Quarterly payments of estimated income tax for most individual taxpayers . Section 6654 provides that, in the case of an individual, estimated income tax is generally required to be paid in four installments, each in the amount of 25 percent of the required annual payment. Generally, under section 6654(d)(1)(B), the required annual payment is the lesser of (i) 90 percent of the tax shown on the return for the taxable year; or (ii) 100 percent of the tax shown on the return of the individual for the preceding taxable year (110 percent if the individual’s adjusted gross income

Relief from Additions to Tax under Sections 6654 and 6655 for Underpayment of Estimated Income Tax by Taxpayers Making an Election under Section 1062