US Tax Tools

72(t) SEPP Calculator

Substantially Equal Periodic Payments let you withdraw from retirement accounts before 59½ without the 10% penalty. Compare all three IRS-approved methods.

Your Retirement Account

RMD Method

$14,006

2.8% of balance / yr

Fixed Amortization

$28,178

5.6% of balance / yr

Fixed Annuitization

$28,400

5.7% of balance / yr

Method Details

RMD Method

$14,006/yr = $1,167/mo

Lowest payment. Recalculated annually — may fluctuate with account balance.

Fixed Amortization

$28,178/yr = $2,348/mo

Fixed payment for life of SEPP — locks in rate at start. Most common choice.

Fixed Annuitization (Highest Payment)

$28,400/yr = $2,367/mo

Fixed payment. Requires mortality math. Least common.

72(t) SEPP payments must continue for 5 years or until age 59½, whichever is longer. Any modification triggers retroactive 10% penalty + interest on all prior distributions. The 120% mid-term AFR is published monthly by the IRS.

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Last updated May 8, 2026 Tax year 2026

Data sources: IRC §72(t)(2)(A)(iv), IRS Revenue Ruling 2002-62, IRS Single Life Expectancy Table (2022)

This tool is general information only, not financial advice.

Reviewed by USTax Tools Editorial Desk

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