72(t) SEPP Calculator

Estimate substantially equal periodic payments using your account balance, interest rate, and annuity factor.

Account Inputs

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.

Formulas

Annual Payment:

\[ \text{Annual Payment} = \frac{\text{Account Balance} \times \text{Interest Rate}}{\text{Annuity Factor}} \]
Citations

IRS guidance: irs.gov

Changelog
  • 0.1.0-draft — 2026-01-19 — Initial audit spec draft generated from HTML extraction (review required).
  • 0.1.0-draft — 2026-01-19 — Verify formulas match the calculator engine and convert any text-only formulas to LaTeX.
  • 0.1.0-draft — 2026-01-19 — Confirm sources are authoritative and relevant to the calculator methodology.
  • 1.0.0 — 2026-01-27 — Refactored layout into canonical CalcDomain template and added validation for divide-by-zero.
Verified by Ugo Candido
Last Updated: 2026-01-27
Version 1.0.0