72(t) Calculator
The IRS Rule 72T allows for penalty free, early withdrawals from retirement accounts. Use this calculator to determine your allowable 72T Distribution and how it can help fund your early retirement.
How the 72(t) calculator works
It applies the amortization method: your balance is spread over your IRS single life expectancy at a permitted interest rate, producing the substantially equal annual payment you can take penalty-free before 59½.
Worked example: with retirement account balance of $400,000, your current age of 52 and sepp interest rate (≤120% afr) of 5.00%, the 72(t) calculator (sepp) shows annual sepp distribution of $24,702.
- Account balance
- $400,000
- Life expectancy
- 34.4 yrs
- Annual distribution
- $24,702
- As % of balance
- 6.2%
| Retirement account balance | Annual SEPP distribution |
|---|---|
| $200,000 | $12,351 |
| $400,000 | $24,702 |
| $800,000 | $49,404 |
| $1,500,000 | $92,633 |
The formula
Annual SEPP = balance amortized over your life-expectancy years at the chosen rate (up to 120% of the federal mid-term rate).
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the 72(t) calculator
What is a 72(t) SEPP?
A series of substantially equal periodic payments that lets you withdraw from a retirement account before 59½ without the 10% early-withdrawal penalty, under IRS rule 72(t).
How long must the payments continue?
Until the later of five years or reaching age 59½. Changing or stopping the payments early retroactively reinstates the 10% penalty on all prior distributions, plus interest.
Which method should I use?
The IRS allows the amortization, annuitization or RMD methods. Amortization (used here) usually gives the largest fixed payment. Set it up with a professional, as mistakes are costly.
Is the 72(t) Calculator free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.