Updated October 30, 2026. Quick answer: The IRS minimum present value segment rates for November 2025, in percent, are 4.07 (first segment), 5.15 (second) and 6.01 (third), from the IRS table of minimum present value segment rates. They are the interest rates under section 417(e)(3)(D) that set the minimum lump sum a defined benefit plan can pay. Against October 2025 (4.01, 5.04 and 5.83), the first segment is up 0.06 points, the second is up 0.11 points and the third is up 0.18 points (computed).
The November 2025 rates
| Segment | Rate for November 2025 (%) |
|---|---|
| First segment | 4.07 |
| Second segment | 5.15 |
| Third segment | 6.01 |
The IRS table of minimum present value segment rates lists November 2025 at 4.07, 5.15 and 6.01 (percent). The table is the IRS’s own list of the applicable interest rates under section 417(e)(3)(D) for each month.
The six months up to November 2025
| Month | First segment (%) | Second segment (%) | Third segment (%) |
|---|---|---|---|
| November 2025 | 4.07 | 5.15 | 6.01 |
| October 2025 | 4.01 | 5.04 | 5.83 |
| September 2025 | 4.06 | 5.12 | 5.93 |
| August 2025 | 4.20 | 5.29 | 6.08 |
| July 2025 | 4.38 | 5.41 | 6.13 |
| June 2025 | 4.43 | 5.46 | 6.13 |
How November 2025 compares
| Compared with | How long before | First segment, points | Second segment, points | Third segment, points |
|---|---|---|---|---|
| October 2025 | 1 month | up 0.06 | up 0.11 | up 0.18 |
| May 2025 | 6 months | down 0.43 | down 0.42 | down 0.22 |
| November 2024 | 12 months | down 0.59 | down 0.10 | up 0.44 |
Against October 2025 (4.01, 5.04 and 5.83), the first segment is up 0.06 points, the second is up 0.11 points and the third is up 0.18 points (computed from the two tables).
Against November 2024 (4.66, 5.25 and 5.57), the first segment is down 0.59 points, the second is down 0.10 points and the third is up 0.44 points (computed from the two tables).
Which month’s rates a distribution uses
The statute defines the applicable interest rate as the adjusted first, second and third segment rates “for the month before the date of the distribution or such other time as the Secretary may by regulations prescribe”. The default is therefore the month before the distribution date, and the statute allows other times by regulation, so confirm with your plan administrator which month your plan uses before comparing an offer with this table.
What the rates are used for
The statute sets the floor for a lump sum: “the present value shall not be less than the present value calculated by using the applicable mortality table and the applicable interest rate”. Discounting at a higher rate gives a smaller present value; that is arithmetic, not a quotation. So, other things equal, higher segment rates produce a smaller minimum lump sum, and your plan may pay more than the minimum. The mechanism is explained on how interest rates change a pension lump sum.
Common mistakes
- Comparing these spot rates with 24-month average segment rates. The statute’s definition substitutes the average yields for the month for the 24-month period.
- Assuming the rate for the month you receive the offer is the one that prices the lump sum. The statute’s default is the month before the distribution date.
- Using only the first segment rate. The statute names three rates: the adjusted first, second and third segment rates.
Related: the October 2025 segment rates, the December 2025 segment rates, all the IRS segment rates, and a pension buyout offer.
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Answer againSources
- Internal Revenue Service, Minimum present value segment rates (monthly table of the applicable interest rates under section 417(e)(3)(D)): www.irs.gov
- 26 U.S.C. 417, Definitions and special rules for purposes of minimum survivor annuity requirements (U.S. Code, 2024 edition, U.S. Government Publishing Office): www.govinfo.gov
Read from the primary documents linked above on October 30, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the IRS itself is the right place to confirm anything consequential.