72(t) SEPP Calculator

Rule 72(t) lets you take penalty-free IRA withdrawals before 59.5, if you commit to equal payments for years. Estimate yours.

IRA balance ($)The account you'd draw from Your current ageMust be under 59.5 to need this rule Life expectancy factorIRS divisor for your age, roughly 80 minus your age

Estimated annual payment
Monthly equivalent
Years you must continue

Educational estimate only, not tax advice. Real 72(t) plans have three IRS-approved calculation methods and strict rules — consult a tax professional before starting one.

How it works

Normally withdrawing from an IRA before 59.5 triggers a 10% penalty. Rule 72(t) waives it if you commit to Substantially Equal Periodic Payments (SEPP) — a fixed withdrawal schedule you must follow for at least 5 years or until you turn 59.5, whichever is longer. This uses the required-minimum-distribution method, one of three IRS-approved ways to calculate the payment, dividing your balance by a life-expectancy factor. Breaking the schedule early retroactively triggers penalties on everything you've withdrawn, so this is a serious, hard-to-reverse commitment.

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