Part III --- Administrative, Miscellaneous, and Procedural Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates
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Internal Revenue Bulletin › IRB 2026 › Notice › Notice 2026-2
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Part III --- Administrative, Miscellaneous, and Procedural
Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates
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
mining 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, 2023-40 I.R.B. 992, Notice 2024-67, 2024-41 I.R.B. 726 and Notice 2025-47,
2025-40 I.R.B. 441, respectively.
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)
ly 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).
2
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:
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 percentages of the corresponding 25-year
average segment rates in accordance with § 430(h)(2)(C)(iv), are as follows:
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
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 average 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:
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
Treasury Weighted Average Rates
For Plan Years
30-Year Treasury
Permissible Range
Beginning In
Weighted Average
90% to 105%
December 2025
4.32
3.89 to 4.54
Adjusted 24-Month Average Segment Rates
For Plan Years
First
Second
Third
Beginning In
Applicable Month
Segment
Segment
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
3
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
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
3
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:
DRAFTING INFORMATION
The principal author of this notice is Tom Morgan of the Office of Associate 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).
Month
First Segment
Second Segment
Third Segment
November 2025
4.07
5.15
6.01
4
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
.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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