Rule 72(t) lets you tap an IRA before 59½ without penalty via equal payments.
This calculator estimates penalty-free early IRA withdrawals under IRS Rule 72(t) using the amortization method over your single life expectancy.
Rule 72(t) lets you take substantially equal periodic payments from an IRA before age 59 and a half without the usual 10 percent early-withdrawal penalty. The amortization method spreads your balance over your single life expectancy at a chosen interest rate, producing a fixed annual amount. This tool applies that method to estimate the yearly distribution your balance supports.
Once started, the payment schedule generally must continue without changes for at least five years or until you reach age 59 and a half, whichever is longer. Modifying or stopping the payments early can trigger retroactive penalties plus interest on all prior distributions. Because the IRS sets limits on the interest rate and life expectancy tables you may use, confirm the details with a tax advisor before starting. Not financial advice.
It is a series of substantially equal periodic payments that lets you tap an IRA early without the 10 percent penalty.
Generally for at least five years or until age 59 and a half, whichever is longer.
Modifying the schedule too soon can trigger retroactive penalties and interest on the earlier withdrawals.
See the exact formula and a worked example on our methodology page.