72(t) Distribution Impact
This calculator is designed to examine the affects of 72T distributions on your retirement plan balance.
How the 72(t) distribution impact calculator works
It steps your balance forward each year, applying the return and subtracting the fixed 72(t) distribution, to show what remains after the SEPP period — alongside what the account would be worth untouched.
Worked example: with starting balance of $400,000, annual 72(t) distribution of $18,000 and years of distributions of 8, the 72(t) distribution impact calculator shows balance after 8 years of $459,385.
- Total distributions
- $144,000
- Remaining balance
- $459,385
- If left untouched
- $637,539
- Growth given up
- $178,154
The formula
Each year: balance = balance × (1 + return) − annual distribution. Compared against balance × (1 + return)^years with no withdrawals.
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) distribution impact
How much does a 72(t) shrink my account?
It depends on the payment size, return and years. The calculator shows the ending balance versus leaving it untouched, so you can see the growth you trade for early income.
Can my balance still grow during a SEPP?
It can, if returns exceed the withdrawals, but the fixed payments slow growth considerably. SEPP is for income needs, not wealth building.
What happens when the SEPP ends?
After the required period (5 years or age 59½, whichever is later) you regain full flexibility — you can stop, change, or continue withdrawals without penalty.
Is the 72(t) Distribution Impact 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.