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Early Retirement Tool

72(t) SEPP Calculator

Physical work takes a toll. If your body says "retire" before 59.5, Rule 72(t) lets you access your IRA penalty-free. See how much you can withdraw.

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What is your IRA account balance?

Enter the current balance of the IRA you want to take SEPP distributions from

$500,000
$50,000$5,000,000

Understanding 72(t) SEPP Distributions

What is 72(t)?

IRS Rule 72(t) allows you to take penalty-free withdrawals from your IRA before age 59½ through Substantially Equal Periodic Payments (SEPP). This is ideal for early retirees who need access to retirement funds.

Which Method to Choose?

RMD: Lowest payments, can vary year to year.
Amortization: Highest fixed payments, most popular.
Annuitization: Fixed payments using annuity factors.

Duration Requirements

You must continue SEPP distributions for the longer of 5 years OR until you reach age 59½. If you're 50, that means 9.5 years. If you're 57, that means 5 years (until age 62).

Modification Penalty

If you modify your SEPP plan (other than the one-time switch to RMD), the IRS will apply a 10% penalty to ALL previous distributions, plus interest. This makes careful planning essential.