72(t) SEPP calculator.
IRA early withdrawal without the 10% penalty.
Calculate your required annual distribution under all three IRS-approved 72(t) methods for penalty-free IRAIndividual Retirement Account (IRA)A retirement account with tax advantages and eligibility rules. Traditional IRA contributions may be deductible; taxable withdrawals generally enter income. Roth contributions use after-tax money, and qualified Roth withdrawals are tax-free.Full definition withdrawals before age 59 and a half.
The question it answersHow much can I withdraw from my IRA before 59 1/2 without the 10% penalty?
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// IMPORTANT. Once you begin a 72(t) schedule, you must continue for at least 5 years OR until age 59½, whichever is longer. Modifying the schedule before the period ends triggers the 10% penalty retroactively on every prior payment, plus interest. Consult a CPA before implementing.
US-only. Section 72(t) is a US Internal Revenue Code provision.
$400,000 IRA, age 50, IRS max rate 5.0%. RMDRequired Minimum Distribution (RMD)The minimum the IRS requires you to withdraw each year from traditional IRAs, 401(k)s, and similar accounts, generally starting at 73, or 75 if born in 1960 or later. It equals the prior December 31 balance divided by an IRS life expectancy factor. Roth IRAs and Roth 401(k)s have no RMDs during the owner's lifetime. method: ~$11,050/year (~$921/month). AmortizationamortizationThe process of paying off a loan through regular payments that cover both principal and interest.Full definition method: ~$24,125/year (~$2,010/month). Annuitization method: ~$25,218/year (~$2,102/month). Required durationdurationA measure of how sensitive a bond price is to interest rate changes. A bond with 10-year duration falls roughly 10% in price when rates rise 1 percentage point. Longer duration = more interest rate risk.: 9.5 years (to age 59½, longer than 5 years). The 72(t) only waives the 10% penalty; income tax still applies.
Estimate, not tax or legal advice. It applies the current rules listed in the assumptions to the numbers you enter. Details this tool does not model can change the result.
What this tool assumes and how it calculates
- RMD method: annual distribution = balance / life expectancy. Recalculated each year as balance and age change. The tool shows year-1 only.
- Amortization method: standard annuity-payment formula. PMT = balance × r / (1 - (1+r)^(-n)) where r is the annual rate and n is life expectancy in years. Fixed annual amount.
- Annuitization method: annual distribution = balance / annuity factor. The annuity factor is the present value of $1 per year, paid at each year-end while you are alive, from the mortality rates in Treas. Reg. §1.401(a)(9)-9(e) at your rate.
- Required duration: longer of 5 years OR years until age 59.5.
- Life expectancy: changing your age fills in the IRS Single Life Table figure for that age (Treas. Reg. §1.401(a)(9)-9(b)). To use the Uniform Lifetime or Joint and Last Survivor table instead, type its figure after setting your age. The IRS publishes the current tables; verify the exact factor for your age before filing.
- This tool is educational. The IRS requires exact calculation using current published tables and rates. A CPA or tax attorney should verify your schedule before you take the first distribution.
HOW THIS IS CALCULATED
This tool runs entirely in your browser: no data is sent to any server. The assumptions and default values behind the result are listed under “What this tool assumes and how it calculates” on this page. Verify the methodology or inspect the source code in your browser's dev tools.
Where to go from here
Sources
Verify badges in the text link to these sources. Figures, rates and rules change: check each source’s date before acting on it.
- Internal Revenue Service, IRS SEPP guidance ↩
Calculators are educational estimates, not financial advice. Disclosures · How pages are reviewed