72(t) Calculator: SEPP Early Withdrawal

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Account balance

Your age

Interest rate up to 5% or 120% of the federal mid-term rate, whichever is greater

Annual SEPP

Penalty-free withdrawal

Shows the amortization method (your balance spread over your single life expectancy at a permitted interest rate, a fixed payment) and the RMD method (balance divided by life expectancy, recalculated each year). Life expectancies come from the IRS Single Life Table in effect since 2022. Payments must continue for 5 years or until age 59½, whichever is longer. The IRS also allows RMD and annuitization methods. Consult a tax advisor before starting.

About this calculator

How 72(t) SEPP withdrawals work

Updated October 2026

Rule 72(t) lets you take money out of an IRA before age 59½ without the 10% early withdrawal penalty, as long as you take it as a series of substantially equal periodic payments (SEPP). The catch is that the payment amount is set by an IRS formula and you have to stick to it for years. This calculator shows the payment under the two most common methods. With the defaults, a 52-year-old with $400,000 and a 5% rate can take $24,618 a year under the amortization method, or $11,662 in year one under the RMD method.

The three IRS methods

Amortization: your balance is paid out like a loan over your life expectancy at a chosen interest rate. The payment is fixed and is usually the largest of the three. This is the one most early retirees use.
Annuitization: similar to amortization but uses an annuity factor from an IRS mortality table. It produces a fixed payment close to the amortization result.
Required minimum distribution (RMD): each year's payment is the account balance divided by your life expectancy that year. It is recalculated annually, so it rises and falls with the market, and it is much smaller at first.

The life expectancy figures come from the IRS Single Life Table that took effect in 2022. You may also use the Uniform Lifetime or Joint and Last Survivor tables; the single life table gives the largest payment under amortization.

What the payment looks like by age

For a $400,000 IRA at a 5% rate, using the single life table:

Age at start	Life expectancy	Amortization (fixed)	RMD method (year 1)	Must continue until
45	41.0 years	$23,129	$9,756	59½
50	36.2 years	$24,125	$11,050	59½
52	34.3 years	$24,618	$11,662	59½
55	31.6 years	$25,445	$12,658	60
57	29.8 years	$26,098	$13,423	62

Payments must continue for five years or until you reach 59½, whichever is later. Someone starting at 45 is locked in for more than 14 years. Someone starting at 57 has to continue to 62.

The interest rate you can use

Under IRS Notice 2022-6, the rate for the amortization and annuitization methods can be any rate up to the greater of 5% or 120% of the federal mid-term rate for either of the two months before your first payment. The IRS publishes the federal mid-term rate monthly. A higher rate produces a larger payment: at 3% instead of 5%, the default example drops from $24,618 to $18,833 a year.

The rule that trips people up

If you change the payment, add money to the account, take an extra withdrawal, or stop early for any reason other than death or disability, the plan is "modified." The 10% penalty then applies to every payment you have taken since the start, plus interest. On a plan paying $25,000 a year, a mistake in year six could cost more than $15,000 in back penalties.

Ways people keep a 72(t) plan safe:

Size the account first. Split your IRA so that only the amount needed sits in the 72(t) account. The rest stays untouched and flexible.
Automate the payment with your custodian so the amount never varies.
Know your one escape hatch. You may switch once from the amortization or annuitization method to the RMD method without it counting as a modification. That lowers the payment if you need to.
Keep records of the method, table, rate and calculation you used.

Alternatives to consider first

The age-55 rule. If you leave your employer in or after the year you turn 55, you can withdraw from that employer's 401(k) penalty-free without a 72(t) plan. Rolling that money to an IRA first would lose this option.
Roth contributions. Your own Roth IRA contributions (not earnings) can be withdrawn at any time, tax and penalty free.
A taxable brokerage account has no age limits at all.

Planning an early retirement? The FIRE calculator shows how large a portfolio you need, and the retirement withdrawal calculator tests how long it lasts.

Frequently asked questions

What is a 72(t) distribution?

It is a series of substantially equal periodic payments from an IRA that avoids the 10% early withdrawal penalty before age 59½. The payment is set by one of three IRS methods and must continue for five years or until 59½, whichever is later. The withdrawals are still subject to income tax.

How much can I withdraw under 72(t)?

It depends on your balance, age, interest rate and method. For a 52-year-old with $400,000 at 5%, the amortization method allows about $24,618 a year and the RMD method about $11,662 in the first year.

What happens if I break a 72(t) plan?

The 10% penalty applies retroactively to every distribution taken under the plan, plus interest, unless the change is due to death or disability.

What interest rate can I use for 72(t)?

Any rate up to the greater of 5% or 120% of the federal mid-term rate for either of the two months before the first distribution, under IRS Notice 2022-6.

Can I use 72(t) on a 401(k)?

It is allowed from a former employer's plan, but most people roll the money to an IRA first for flexibility. If you left your job at 55 or older, the separate age-55 rule may let you skip 72(t) for that 401(k).

Sources: Internal Revenue Code section 72(t)(2)(A)(iv); IRS Notice 2022-6 (methods, interest rate and life expectancy tables); IRS Revenue Ruling 2002-62 (one-time switch to the RMD method). Not tax advice; confirm your plan with a tax professional before the first payment.