72(t) SEPP Calculator
72(t) SEPP: withdraw IRA before 59.5 without 10% penalty. Must continue 5 years or until 59.5. Three methods.
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IRC 72(t) Substantially Equal Periodic Payments (SEPP) allow you to withdraw from IRA/401(k) before age 59.5 without the 10% early withdrawal penalty. Must continue equal payments for greater of 5 years or until age 59.5. Three calculation methods — choose carefully, irreversible.
Three SEPP Methods
Amortization: highest payment, uses interest rate + life expectancy. Annuitization: middle, uses annuity factor. RMD: lowest, divides by life expectancy. Once chosen, generally cannot switch (one-time RMD switch allowed). Pick method based on cash flow need.
Required Duration
Must continue 5 years OR until age 59.5, whichever is LONGER. Age 45 starts: continue to 59.5 (14.5 years). Age 55 starts: continue to 60 (5 years past — minimum). Modifying for ANY reason triggers retroactive 10% penalty on all prior withdrawals + interest. Major penalty risk.
Strategic Use Cases
Early retirement (FIRE movement). Disability without other income. Business owner taking IRA before 59.5. Public safety retirement at 55-60 (alternative: Rule of 55). Compare against Rule of 55 (for 401k) — Rule of 55 simpler if 401k available.
Last updated May 2026. Sources: IRS 72(t) SEPP.