Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Estimated annual SEPP payment
$30,217
Equivalent monthly amount
$2,518
Required years of payments
11.5
Total withdrawn over required term
$347,498
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How to use this
- 1Enter account balance ($).
- 2Enter your current age.
- 3Enter irs life expectancy factor (single life, uniform table).
- 4Enter interest rate assumption (max 120% federal midterm rate) (%).
- 5Enter sepp method.
- 6Read your estimated annual sepp payment on the right — it updates as you type.
- 7Hit Share to keep the scenario or send it to someone.
About this calculator
Rule 72(t) lets you pull money from an IRA or old 401(k) before age 59½ without the usual 10% early withdrawal penalty, provided you commit to Substantially Equal Periodic Payments (SEPP) for five years or until you hit 59½, whichever is longer. This tool estimates the annual payment under the three IRS-approved methods: Required Minimum Distribution (RMD, which recalculates and varies each year), Fixed Amortization (level payment, like amortizing the balance over your life expectancy), and Fixed Annuitization (level payment using an annuity factor). The amortization and annuitization methods generally produce larger, level payments; the RMD method produces the smallest initial payment but adjusts with the balance every year. Once you start, breaking the schedule early — taking more or less, or stopping — triggers retroactive 10% penalties on all prior distributions plus interest, so this decision needs real commitment.
Worked example
Using the values the calculator loads with:
Inputs
- Account balance: 500000 $
- Your current age: 48
- IRS life expectancy factor (single life, Uniform table): 36
- Interest rate assumption (max 120% federal midterm rate): 5 %
- SEPP method: Fixed amortization (level)
Results
- Estimated annual SEPP payment: $30,217
- Equivalent monthly amount: $2,518
- Required years of payments: 11.5
- Total withdrawn over required term: $347,498
What each field means
Inputs
- Account balance ($)
- The account balance used in the calculation, measured in $. Starts at 500000 $ so you have a working example on load.
- Your current age
- The your current age used in the calculation. Starts at 48 so you have a working example on load. Accepted range: 30–59.
- IRS life expectancy factor (single life, Uniform table)
- The irs life expectancy factor (single life, uniform table) used in the calculation. Starts at 36 so you have a working example on load. Accepted range: 10–55.
- Interest rate assumption (max 120% federal midterm rate) (%)
- The interest rate assumption (max 120% federal midterm rate) used in the calculation, measured in %. Starts at 5 % so you have a working example on load. Accepted range: 0–10 %.
- SEPP method
- Pick the option that matches your situation — the maths changes per option. Choices: RMD method (smallest, variable), Fixed amortization (level), Fixed annuitization (level).
Results
- Estimated annual SEPP payment
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Equivalent monthly amount
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Required years of payments
- Returned as a decimal number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Total withdrawn over required term
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
How long must I keep taking 72(t) payments?
The greater of five years or until you reach age 59½. If you start at 48, you're locked in for roughly 11.5 years, not just five, because you must also cross 59½. Starting closer to 55 shortens the commitment to the five-year minimum.
Can I change the payment amount later?
You can switch once, from either the amortization or annuitization method to the RMD method, without penalty. Any other modification — different withdrawal amount, additional contributions, or stopping early — busts the SEPP and triggers the 10% penalty retroactively on all distributions, plus interest.
What interest rate can I use for the amortization method?
IRS rules cap it at 120% of the federal midterm rate published for either of the two months before the payment start date. This rate moves with market conditions, so check the current published rate rather than assuming last year's number applies.
Is 72(t) a good idea for early retirement?
It works when you need income only from retirement accounts and have no other bridge (like taxable brokerage funds or Roth contributions). Because it locks you into years of fixed distributions from a specific account, most FIRE planners treat it as a last resort after taxable accounts and Roth basis are exhausted.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
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Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). 72(t) SEPP Withdrawal Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/sepp-72t-withdrawal
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/sepp-72t-withdrawal" target="_blank" rel="noopener">72(t) SEPP Withdrawal Calculator — RevenueLab</a> (2026).</p>
Source: [72(t) SEPP Withdrawal Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/sepp-72t-withdrawal) (2026).