Interest included in the unexpended balance.

CFR · 2024-01-01 · US · Title 5

(a) Interest on each Individual Retirement Record is computed separately. (b) For determining the amount of interest in the unexpended balance when none of the employee deductions have been returned (e.g., employee refunds or at the time of retirement), the amount of interest in the unexpended balance equals the sum of the amounts of interest applicable to each calendar year's deductions. The amount of interest on each calendar year's deductions equals the sum of— (1) For the calendar year in which the deductions were taken— (i) Except during the last year of service, the amount of the employee's deductions for that calendar year times the rate of interest set under § 841.603 for that calendar year times the fraction whose numerator is the number of full months when deductions were withheld and whose denominator is 24; (ii) During the last year of service, the amount of the employee's deductions for that year times the rate of interest set under § 841.603 for that year times the fraction— (A) Whose numerator equals the sum of— ( ( (B) Whose denominator is 12. (2) For each calendar year after the year when the deductions were withheld but before the calendar year of the computation, the amount of the employee's deductions plus interest for prior years, times the rate of interest set under § 841.603 for that year; and (3) For the year of the computation— (i) If it is not the same calendar year that the deductions were withheld, the amount of the employee's deductions plus inter

official document · source cfr-2024 · id 5:§ 841.605