IRS Rule 72(t) SEPP Calculator

Calculate Substantially Equal Periodic Payments for penalty-free early IRA withdrawals

Enter Your Information

Interest Rate Note: Per IRS Notice 2022-6, you may use any rate up to the greater of 5% or 120% of the federal mid-term rate. You can choose a lower rate (including 0%) for more conservative distributions. Higher rates produce higher payments.
Current Federal Mid-Term AFR
%
Maximum Allowed Rate
5.09%
Greater of 5% or 120% of AFR
When distributions will begin
0% to 5.09% (higher = higher payments)
Single Life typically yields higher payments
For account balance projection chart
For federal tax estimation
Non-SEPP income (wages, SS, etc.)
Optional state income tax

About IRS Rule 72(t)

Section 72(t) allows penalty-free early withdrawals from IRAs and qualified plans before age 59ยฝ through SEPP. The IRS provides three approved calculation methods: RMD, Fixed Amortization, and Fixed Annuitization.

IRS References & Documentation

Primary Guidance:

Life Expectancy & Mortality Tables:

  • 26 CFR ยง1.401(a)(9)-9 - Life expectancy and distribution period tables
    • Table 1 (Single Life Table) - ยง1.401(a)(9)-9(b)
    • Table 2 (Uniform Lifetime Table) - ยง1.401(a)(9)-9(c)
    • Table 4 (Mortality Rates) - ยง1.401(a)(9)-9(e)
  • IRS Applicable Federal Rates (AFR) - Current federal mid-term rates

Interest Rate Rules:

  • Per Notice 2022-6: Use the greater of 5% or 120% of the federal mid-term rate for amortization and annuitization methods
  • This 5% floor represents a significant increase from prior guidance and allows for higher distribution amounts