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 IRA 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%. RMD method: ~$11,765/year (~$980/month). Amortization method: ~$25,512/year (~$2,126/month). Annuitization method: ~$25,317/year (~$2,110/month). Required duration: 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.