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 personal retirement savings account with tax advantages. Two main types: Traditional (tax now, pay later) and Roth (pay now, tax-free forever).Full definition withdrawals before age 59 and a half.
// 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 amount the IRS requires you to withdraw annually from Traditional IRAs and 401ks starting at age 73 (rising to 75 in 2033). Calculated as account balance divided by your IRS life expectancy factor. Roth IRAs have no RMDs during the owner’s lifetime. method: ~$11,765/year (~$980/month). AmortizationamortizationThe process of paying off a loan through regular payments that cover both principal and interest.Full definition method: ~$25,512/year (~$2,126/month). Annuitization method: ~$25,317/year (~$2,110/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.
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 = (1 - (1+r)^(-n)) / r. Similar to amortization in result; differences arise from compounding conventions.
- Required duration: longer of 5 years OR years until age 59.5.
- Life expectancy: default uses approximate IRS Single Life Table values. 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. All formulas use standard financial math. Verify the methodology or inspect the source code in your browser's dev tools.