72(t) SEPP Withdrawal Calculator
Estimate 72(t) substantially equal periodic payments (SEPP) that let you withdraw from a 401k early without the 10% penalty.
Penalty, tax, and net-payout figures are worked out on your device — your 401(k) balance and tax details never leave the page.Try: Withdrawal amount=10000, Current age=50, Federal tax rate=22, State tax rate=0, Exemption=72t, Expected annual return=7, Years left to grow=15 → $10,000, -$2,200, -$0, -$0, $7,800, $17,590
How to use
A 72(t) SEPP lets you tap a retirement plan early by taking a stream of substantially equal periodic payments. The 10% penalty is waived as long as the schedule runs for five years or until age 59½, whichever is longer. This tool pre-selects the 72(t) exemption to show the penalty-free withdrawal.
FAQ
What is a 72(t) SEPP?
A series of substantially equal periodic payments (SEPP) under IRS Code §72(t) lets you withdraw from a retirement plan early without the 10% penalty, as long as payments follow an IRS-approved method and continue for five years or until age 59½, whichever is longer.
How are the payments calculated?
The IRS allows three methods: the required minimum distribution method, the fixed amortization method, and the fixed annuitization method. Each produces an annual payment based on your balance and life expectancy.
What happens if I change the payments?
Modifying the schedule before the required period ends generally triggers the 10% penalty retroactively on all amounts already taken, plus interest. Most people lock the plan in and leave it alone.