Notice 2026-31

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, 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 April 2026

data is in Table 2026-4 at the end of this notice. The spot first, second, and third segment rates for the month of April 2026 are, respectively, 4.27, 5.34, and 6.22.

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 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 2025 and 2026 were published in 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 May 2026 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 May 2026 4.42 5.26 5.87

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 May 2026, adjusted to be within the applicable minimum and maximum percentages 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

2025 May 2026 4.75 5.26 5.87

2026 May 2026 4.75 5.25 5.87

30-YEAR TREASURY SECURITIES INTEREST RATES

Section 431 specifies the minimum funding requirements that apply to multi

employer 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) pro

vides 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 Trea

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)).

June 1, 2026 1562 Bulletin No. 2026–23

sury 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 April 2026 is 4.91 percent. The Service determined this rate as the average of the daily determinations of yield on the 30-year Treasury bond maturing in February 2056.

For plan years beginning in May 2026, 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%

May 2026 4.50 4.05 to 4.72

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 min

imum present value segment rates. Pursuant to that section, the minimum present value segment rates determined for April 2026 are as follows:

Minimum Present Value Segment Rates Month First Segment Second Segment Third Segment April 2026 4.27 5.34 6.22

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. 2026–23 1563 June 1, 2026

Table 2026-4 Monthly Yield Curve for April 2026

Derived from April 2026 Data

Maturity Yield Maturity Yield Maturity Yield Maturity Yield Maturity Yield 0.5 4.00 20.5 5.90 40.5 6.26 60.5 6.40 80.5 6.46 1.0 4.08 21.0 5.91 41.0 6.27 61.0 6.40 81.0 6.46 1.5 4.16 21.5 5.93 41.5 6.27 61.5 6.40 81.5 6.46 2.0 4.22 22.0 5.95 42.0 6.28 62.0 6.40 82.0 6.47 2.5 4.27 22.5 5.96 42.5 6.28 62.5 6.40 82.5 6.47 3.0 4.31 23.0 5.98 43.0 6.29 63.0 6.41 83.0 6.47 3.5 4.35 23.5 5.99 43.5 6.29 63.5 6.41 83.5 6.47 4.0 4.39 24.0 6.00 44.0 6.29 64.0 6.41 84.0 6.47 4.5 4.44 24.5 6.01 44.5 6.30 64.5 6.41 84.5 6.47 5.0 4.49 25.0 6.03 45.0 6.30 65.0 6.41 85.0 6.47 5.5 4.55 25.5 6.04 45.5 6.31 65.5 6.42 85.5 6.47 6.0 4.61 26.0 6.05 46.0 6.31 66.0 6.42 86.0 6.48 6.5 4.68 26.5 6.06 46.5 6.31 66.5 6.42 86.5 6.48 7.0 4.74 27.0 6.07 47.0 6.32 67.0 6.42 87.0 6.48 7.5 4.81 27.5 6.08 47.5 6.32 67.5 6.42 87.5 6.48 8.0 4.88 28.0 6.09 48.0 6.33 68.0 6.42 88.0 6.48 8.5 4.95 28.5 6.09 48.5 6.33 68.5 6.43 88.5 6.48 9.0 5.01 29.0 6.10 49.0 6.33 69.0 6.43 89.0 6.48 9.5 5.07 29.5 6.11 49.5 6.34 69.5 6.43 89.5 6.48 10.0 5.13 30.0 6.12 50.0 6.34 70.0 6.43 90.0 6.48 10.5 5.19 30.5 6.13 50.5 6.34 70.5 6.43 90.5 6.48 11.0 5.25 31.0 6.14 51.0 6.35 71.0 6.44 91.0 6.49 11.5 5.30 31.5 6.15 51.5 6.35 71.5 6.44 91.5 6.49 12.0 5.35 32.0 6.16 52.0 6.35 72.0 6.44 92.0 6.49 12.5 5.40 32.5 6.16 52.5 6.35 72.5 6.44 92.5 6.49 13.0 5.45 33.0 6.17 53.0 6.36 73.0 6.44 93.0 6.49 13.5 5.49 33.5 6.18 53.5 6.36 73.5 6.44 93.5 6.49 14.0 5.53 34.0 6.19 54.0 6.36 74.0 6.44 94.0 6.49 14.5 5.57 34.5 6.19 54.5 6.37 74.5 6.45 94.5 6.49 15.0 5.61 35.0 6.20 55.0 6.37 75.0 6.45 95.0 6.49 15.5 5.64 35.5 6.21 55.5 6.37 75.5 6.45 95.5 6.49 16.0 5.67 36.0 6.21 56.0 6.37 76.0 6.45 96.0 6.49 16.5 5.70 36.5 6.22 56.5 6.38 76.5 6.45 96.5 6.50 17.0 5.73 37.0 6.22 57.0 6.38 77.0 6.45 97.0 6.50 17.5 5.76 37.5 6.23 57.5 6.38 77.5 6.45 97.5 6.50 18.0 5.79 38.0 6.24 58.0 6.38 78.0 6.46 98.0 6.50 18.5 5.81 38.5 6.24 58.5 6.39 78.5 6.46 98.5 6.50 19.0 5.83 39.0 6.25 59.0 6.39 79.0 6.46 99.0 6.50 19.5 5.86 39.5 6.25 59.5 6.39 79.5 6.46 99.5 6.50 20.0 5.88 40.0 6.26 60.0 6.39 80.0 6.46 100.0 6.50

June 1, 2026 1564 Bulletin No. 2026–23

tion enacted or guidance issued after this notice is issued. However, if a plan has not been previously reviewed and is submitted for Cycle 4 (or has been amended with respect to previously approved language), the IRS will also review the plan for items on earlier Cumulative Lists, ³ as well as for any other applicable qualification requirements that were considered by the IRS in issuing opinion letters prior to the implementation of Cumulative Lists.

The list of changes in section IV of this notice does not extend the deadline by which a plan must be amended to comply with any change in the qualification requirements applicable to the plan. The general deadline for timely adoption of an interim or discretionary amendment is provided in section 7 of Rev. Proc. 202337. However, Q&A J-1 of Notice 20242, 2024-2 IRB 316, provides additional guidance with respect to the deadlines for interim or discretionary amendments adopted to reflect applicable provisions of Division O of the Further Consolidated Appropriations Act, 2020, Pub. L. 116-94, 133 Stat. 2534 (FCAA), known as the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), section 104 of Division M of the FCAA, known as the Bipartisan American Miners Act of 2019 (Miners Act), section 2202 or 2203 of the Coronavirus Aid, Relief, and Economic Security Act, Pub. L. 116-136, 134 Stat. 281 (2020) (CARES Act), as modified by section 280 of the COVID-related Tax Relief Act of 2020, which was enacted as Subtitle B, Title II, Division N, of the Consolidated Appropriations Act, 2021, Pub. L. 116-260, 134 Stat. 1182 (2020) (CAA 2021), section 302 of Title III of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act), enacted as Division EE of CAA 2021, or Division T of the Consolidated Appropriations Act, 2023, Pub. L. 117-328, 136 Stat. 4459 (2022), known as the SECURE 2.0 Act of 2022 (SECURE 2.0 Act).

2026 Cumulative List of Changes in Plan Qualification Requirements for Defined Benefit Qualified Pre-approved Plans