How long must the payments continue?

For the longer of five years or until you turn 59½. Modifying them early generally triggers the 10% penalty retroactively on all prior SEPP withdrawals, plus interest.

Which interest rate do I use for amortization?

Notice 2022-6 permits a rate no greater than the larger of 5% or 120% of the federal mid-term rate for either of the two months immediately before the month payments begin. A higher permitted rate produces a larger fixed-amortization payment.

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72(t) SEPP Calculator

Estimate substantially equal periodic payments for penalty-free withdrawals before age 59½, then check the rules and limits before acting.

Reviewed October 25, 2026

Short answer

A 72(t) SEPP can avoid the 10% additional tax on early withdrawals when payments follow an IRS method and continue for the longer of five years or until age 59½. $300,000 at age 53 produces about $8,982 per year under the RMD method or $18,657 with fixed amortization at 5%.

SEPP account balance

Your age

Interest rate

Must not exceed the permitted rate

Maximum permitted rate

Greater of 5% or 120% of the federal mid-term AFR for either of the two preceding months. Entries below 5% use the 5% floor. We do not fetch or verify the AFR.

Fixed amortization$18,657A fixed annual payment (the larger method at nonzero rates)

Required minimum distribution$8,982Balance ÷ 33.4 (Single Life Table)

Two method-specific annual payments

RMD method (lower)$8,982
Difference to fixed amortization$9,675

With these inputs, the RMD method starts at approximately $8,982 per year and fixed amortization produces approximately $18,657 per year. Fixed annuitization is not calculated here.

These are separate IRS methods, not a range of payments you can freely choose. The RMD method recalculates annually; fixed amortization generally stays fixed. Only the Single Life table is modeled here, not joint-life or Uniform Lifetime alternatives.

Required duration: until the later of age 59½ or the fifth anniversary of your first payment.

Starting exactly on your birthday at age 53 means approximately 6.5 years, through age 59.5. Actual dates matter; five tax years is not enough. Starting at 57, for example, generally commits you until 62, not 59½.

Extra withdrawals, contributions, transfers or changing payments can break the schedule and trigger recapture of prior avoided 10% additional tax plus interest. A permitted one-time switch from a fixed method to the RMD method is a limited exception, not general flexibility. Ordinary income tax can still apply. Educational estimate, not a SEPP election or tax advice; confirm dates, account eligibility and exceptions with a qualified tax professional.

Uses the IRS Single Life Expectancy Table under Notice 2022-6. Enter a maximum rate no greater than the larger of 5% or 120% of the federal mid-term rate for either of the two months before payments begin. Covers the RMD and fixed-amortization methods; fixed annuitization is not modeled.

This is an educational estimate, not tax or financial advice. Figures reflect the law year shown and the inputs you provide. Consult a qualified professional before acting.

Sources

Substantially equal periodic payments — Internal Revenue Service
The three permitted SEPP calculation methods and the governing guidance.
Accessed September 2, 2026
Notice 2022-6 — Internal Revenue Service
Current life-expectancy tables, permitted interest rates, and SEPP modification rules.
Accessed September 2, 2026
Revenue Ruling 2002-62 — Internal Revenue Service
The three SEPP methods, fixed-payment treatment, and consequences of modifying a payment series.
Accessed September 2, 2026
Applicable federal rates — Internal Revenue Service
Monthly federal mid-term rates used to determine a permitted SEPP rate.
Accessed September 2, 2026

How it’s calculated

The RMD method divides the account balance by a permitted life-expectancy factor and recalculates the payment each year.
The fixed-amortization method produces one annual amount using a permitted life-expectancy table and an interest rate no greater than the larger of 5% or 120% of the federal mid-term rate for either of the two months before payments begin.
The fixed-annuitization method uses an annuity factor under Notice 2022-6. This calculator describes it but does not calculate it.
Once payments begin, they generally must continue without modification for the longer of five years or until age 59½.

Worked 72(t) example

Account balance: $300,000
Age: 53
Entered rate: 5%
Single Life factor: 33.4

Result

About $8,982 per year under the RMD method or $18,657 under fixed amortization.

The RMD amount can change as the account balance and divisor change. The fixed-amortization amount generally remains fixed. This is an illustration, not a SEPP election or plan document.

What this calculator does not cover

Fixed annuitization is not calculated.
The tool does not determine which accounts qualify or administer a SEPP plan.
Death, disability, transfers, one-time method changes, and other exceptions require plan-specific review.

Frequently asked

How long must the payments continue?: For the longer of five years or until you turn 59½. Modifying them early generally triggers the 10% penalty retroactively on all prior SEPP withdrawals, plus interest.
Which interest rate do I use for amortization?: Notice 2022-6 permits a rate no greater than the larger of 5% or 120% of the federal mid-term rate for either of the two months immediately before the month payments begin. A higher permitted rate produces a larger fixed-amortization payment.