72(t) SEPP Calculator
Estimate substantially equal periodic payments using your account balance, interest rate, and annuity factor.
How to use
Enter your account balance, the applicable interest rate, and the annuity factor. Click Calculate to view the annual SEPP amount. Use Reset to restore the default empty inputs.
Methodology
This calculator estimates Substantially Equal Periodic Payments (SEPP) under IRS Rule 72(t) using a simple annuity-style formula based on account balance, interest rate, and annuity factor.
All calculations are based on IRS guidance for 72(t) distributions. Visit irs.gov for authoritative details.
Glossary of terms
| Term | Definition |
|---|---|
| Account Balance | The total amount in the retirement account. |
| Interest Rate | The applicable interest rate for calculations. |
| Annuity Factor | A factor used to calculate the payment amount. |
How it works: a step-by-step example
Example: If your account balance is $100,000, with a 5% interest rate and an annuity factor of 20, your annual payment is calculated as follows.
Annual Payment = 100000 × 0.05 ÷ 20 = $250.00
Frequently asked questions
What is 72(t) SEPP? It is a rule that allows penalty-free early retirement distributions under specific conditions.
Who should use this calculator? Anyone evaluating early retirement withdrawals who needs a simple SEPP estimate.