72(t) Early Distribution Analysis

Rule 72(t) lets you tap an IRA before 59½ without penalty via equal payments.

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Annual SEPP

Penalty-free withdrawal
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Uses the amortization method: your balance is spread over your single life expectancy at a permitted interest rate, giving a fixed annual payment. 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.

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