72(t) calculator

Free, no signup. A 72(t) distribution calculator, also called a SEPP calculator: work out substantially equal periodic payments (SEPP) from an IRA before 59½ under all three IRS methods, with the current maximum interest rate, the date the payments must run until, and a year-by-year schedule.

Short answer: 72(t) payments let you take equal IRA withdrawals before 59½ without the 10% penalty, for 5 years or until 59½, whichever is later, under one of three IRS methods.

Updated October 23, 2026 · By Berkay Kolay

The calculator

Year you were born

Birth month

Year of the first payment

Month of the first payment

IRA balance used ($)

Interest rate (blank for the maximum) (%)

Assumed investment return (%)

Method in the schedule

Fixed amortization$64,569 a yearOver 36.2 years at 5.54%

Fixed annuitization$67,501 a yearIRS mortality table at 5.54%

Required minimum distribution$27,624 first yearBalance ÷ 36.2, recalculated yearly

Locked in untilFebruary 2036Five years or 59½, whichever is later

Starting at 50 in November 2026, the highest interest rate allowed is 5.54%. The fixed methods pay between $64,569 and $67,501 a year from this IRA, without the 10% penalty, as long as nothing changes until February 2036.

Payment schedule

Fixed amortization payments through the lock-in, with the assumed return
Year	Age	Payment	Year-end balance
2026	50	$64,569	$982,202
2027	51	$64,569	$963,515
2028	52	$64,569	$943,893
2029	53	$64,569	$923,290
2030	54	$64,569	$901,657
2031	55	$64,569	$878,943
2032	56	$64,569	$855,092
2033	57	$64,569	$830,049
2034	58	$64,569	$803,754
2035	59	$64,569	$776,144
2036	60	$64,569	$747,154

How the 72(t) rule works

The 72(t) rule takes its name from section 72(t) of the tax code, which charges a 10% additional tax on retirement account withdrawals before 59½, with exceptions. One exception, at any age, is a series of substantially equal periodic payments (SEPP) worked out with an IRS-approved method. The payments are still taxed as income; only the 10% is waived.

From an IRA you can start whenever you like. From a 401(k) or other employer plan, the series has to start after you leave that employer. Each series uses one account, so you can split an IRA first and run the series on just part of your savings.

The three IRS methods

Required minimum distribution: the balance divided by your life expectancy from the IRS table, recalculated every year. It pays the least and moves with the market, but it cannot run the account dry.
Fixed amortization: the level payment that pays off the balance over your life expectancy at the interest rate you choose. It is set in the first year and does not change.
Fixed annuitization: the balance divided by the cost of a $1 lifetime annuity, from the IRS mortality table and your rate. It usually pays a little more than amortization.

If you start with a fixed method, you may switch once to the RMD method in a later year without breaking the series. This calculator uses the Single Life Table, which gives the largest payments; the Uniform Lifetime and Joint and Last Survivor tables give smaller ones.

The maximum interest rate

The fixed methods can use any rate up to the greater of 5% or 120% of the federal mid-term rate for either of the two months before the first payment. Higher rates mean larger payments.

120% of the federal mid-term rate, annual compounding, by month
Rate month	120% mid-term
November 2025	4.60%
December 2025	4.55%
January 2026	4.57%
February 2026	4.63%
March 2026	4.72%
April 2026	4.59%
May 2026	4.91%
June 2026	4.97%
July 2026	5.23%
August 2026	5.23%
September 2026	5.40%
October 2026	5.54%

For a first payment in November 2026, the higher of September and October gives a cap of 5.54%. Before August 2026, the 5% floor was higher than the federal rate.

The lock-in and breaking it

Payments must continue unchanged for five years from the first payment or until you reach 59½, whichever is later. Changing the amount, adding money to the account or taking an extra withdrawal before then is a modification: the 10% tax comes back on every payment you have taken, plus interest, in the year of the change. Death, disability and running out of money do not count as modifications.

Sizing the payment

Because the payment is fixed by the balance, the usual way to get the income you need is to split an IRA in two before you start and run the series on only one of them. The other stays free for later. Other ways to reach savings before 59½ include the Rule of 55 for a 401(k) at an employer you leave at 55 or later, and a Roth conversion ladder. How much an early retirement needs in total is the FIRE calculator.

Assumptions and sources

One payment a year, starting in the first payment’s calendar year, with the projection’s balance growing at the return you enter. The method follows IRS Notice 2022-6 and matches the worked example in the IRS’s SEPP questions and answers to four decimal places. Not tax advice: a mistake in a 72(t) series is expensive, so have it checked before you start.

Figures checked on October 14, 2026 against IRS Notice 2022-6, substantially equal periodic payments (PDF), IRS, substantially equal periodic payments and IRS, applicable federal rates.

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Frequently asked questions

What is the 72(t) rule?

Section 72(t) of the tax code adds a 10% tax to retirement account withdrawals before 59½ and lists the exceptions. In everyday use, “the 72(t) rule” means one of them: substantially equal periodic payments (SEPP), a fixed series worked out with an IRS method, on which the 10% is waived. Income tax still applies.

What is a 72(t) distribution?

A series of substantially equal periodic payments from an IRA, or from a 401(k) after you leave that employer, worked out with an IRS method. It lets you withdraw before 59½ without the 10% additional tax; income tax still applies.

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

Any rate up to the greater of 5% or 120% of the federal mid-term rate for either of the two months before your first payment. For a first payment in November 2026 the cap is 5.54%.

How long do 72(t) payments have to last?

Five years from the first payment or until you reach 59½, whichever is later. Someone who starts at 50 is locked in for about ten years; someone who starts at 57 for five.

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

It counts as a modification: the 10% tax applies to every payment taken before 59½, plus interest, in the year of the change. Death, disability and running out of money are not modifications.

Which 72(t) method gives the largest payment?

Usually fixed annuitization, then fixed amortization, with the RMD method smallest. At 50 with $1,000,000 and a 5% rate, they pay about $63,000, $60,300 and $27,600 a year.

Can I switch 72(t) methods?

Once, from a fixed method to the RMD method, without it counting as a modification. Any other change before the lock-in ends breaks the series.

Can I use 72(t) on a 401(k)?

Yes, but only after you leave the employer that sponsors the plan. From an IRA you can start at any time. Each series uses one account, so you can split an IRA to size the payment.

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