72(t) Calculator

SEPP payments under IRS Notice 2022-6

Account Balance

For the RMD method, the balance on December 31 of last year

Age This Year

Your age on your birthday in the year of the first payment

Life Expectancy Table

First Payment

Interest Rate

For the two fixed methods; it may not exceed the maximum for the month of the first payment

5.54%

1.00%5.54%

Yearly 72(t) payment by method

RMD method

$13,812

$1,151 a month

Fixed amortization

$32,285

$2,690 a month

Fixed annuitization

$33,751

$2,813 a month

Starting at 50, you must keep the series going for 9.5 years, until age 59½: the later of 5 years after the first payment and age 59½. Changing the amount before then brings back the 10% tax on the payments you took before 59½, plus interest.

How each amount is worked out

Life expectancy at 50 (Single Life)	36.2 years
RMD method: balance ÷ life expectancy	$13,812
Fixed amortization at 5.54% over 36.2 years	$32,285
Fixed annuitization at 5.54% with the IRS mortality table	$33,751

Amounts are before tax. The 72(t) exception removes the 10% additional tax only; the payments are still taxed as income.

By the Coast FIRE Calculator editorial team · Methodology · Official sources: IRS Notice 2022-6 (the three methods, tables and interest rate); IRS: Substantially equal periodic payments (FAQ with worked examples) · Sources checked September 26, 2026 · Corrections: hello@coastfirecalculator.io

How 72(t) payments work

Money taken from an IRA or a workplace plan before 59½ normally owes a 10% additional tax on top of income tax. One exception is a series of substantially equal periodic payments: you pick one of the three IRS methods, work out the yearly amount, and take it every year. The amount can be paid monthly or quarterly as long as the year's total is right.

The series has to run until the later of 5 years after the first payment and age 59½. Change it before then, by taking a different amount, adding money or making an extra withdrawal, and the 10% tax comes back on the payments you took before 59½, plus interest. Two changes are allowed: a one-time switch from a fixed method to the RMD method, and the account running out.

From an IRA you can start any time. From a 401(k) or other employer plan, the payments must begin after you leave that employer. Each series is set up on one account; balances of several accounts cannot be combined.

The three methods

RMD method

The account balance on December 31 of last year, divided by your life expectancy from the chosen table. It is recalculated every year, so the payment moves with the markets, and it is usually the smallest of the three.

Fixed amortization

The level payment that would pay off the balance over your life expectancy at the chosen interest rate, like a mortgage in reverse. It is set in the first year and never changes. The IRS example: $400,000 at 50 over 36.2 years at 4% gives $21,102 a year.

Fixed annuitization

The balance divided by an annuity factor built from the IRS mortality rates and the interest rate. It is also fixed after the first year. The IRS example: at 50 and 4% the factor is 18.1568, so $400,000 gives $22,030 a year.

Life expectancy comes from the Single Life Table or the Uniform Lifetime Table in Notice 2022-6; a Joint and Last Survivor Table can also be used but is not in this calculator. At 50 the Single Life Table gives 36.2 years and the Uniform Lifetime Table 48.5.

Maximum interest rate by month of first payment

First payment in	Maximum rate
July 2026	5.00%
August 2026	5.23%
September 2026	5.23%
October 2026	5.40%
November 2026	5.54%

The greater of 5% and 120% of the federal mid-term rate (annual compounding) for either of the two months before. From IRS revenue rulings 2026-9 to 2026-19, checked September 26, 2026. The IRS does not say which compounding column to use; the annual column is the highest.

Planning an early retirement around 72(t)

72(t) is one of several ways to reach retirement money before 59½. Leaving a job in or after the year you turn 55 lets you take money from that employer's plan without the 10% tax (see the 401(k) early withdrawal calculator), and converting to a Roth IRA gives access to each conversion after 5 years. See Can I retire at 55?, the Roth conversion calculator and the retirement withdrawal calculator.

Sources

Frequently Asked Questions

What is a 72(t) distribution?

A way to take money from an IRA or a 401(k) before age 59½ without the 10% additional tax, by taking a series of substantially equal periodic payments (SEPP) worked out with an IRS-approved method. The payments are still taxed as income.

How much can I take from $500,000 with 72(t) at age 50?

With the Single Life Table and a first payment in November 2026 at the maximum rate of 5.54%: about $13,812 a year with the RMD method, $32,285 with fixed amortization and $33,751 with fixed annuitization.

How long do I have to keep taking 72(t) payments?

Until the later of 5 years after the first payment and the date you reach 59½. Someone who starts at 50 is locked in until 59½; someone who starts at 56 until age 61.

What happens if I change my 72(t) payments early?

Taking more, less, or adding money to the account before the period ends is a modification. You then owe the 10% tax that was waived on your payments before 59½, plus interest, in the year of the change. Two changes are allowed: a one-time switch from a fixed method to the RMD method, and the account running out.

What interest rate can I use for 72(t)?

Any rate up to the greater of 5% or 120% of the federal mid-term rate for either of the two months before the month of the first payment. The table on this page lists the maximum by month from the IRS revenue rulings.

Can I do 72(t) from my 401(k)?

Yes, but from an employer plan the payments must begin after you leave that employer. From an IRA there is no such requirement. Each series is set up on one account; balances cannot be combined.

Is 72(t) or the rule of 55 better?

If you leave your job in or after the year you turn 55, withdrawals from that employer's plan avoid the 10% tax without the fixed schedule of 72(t). The rule of 55 does not apply to IRAs, where 72(t) is the usual route before 59½.

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