GLOSSARY · RETIREMENT WITHDRAWALS & EARLY ACCESS
72(t) substantially equal periodic payments (SEPP)
A way to take money from an IRA before 59½ without the 10% additional tax: a series of payments computed by one of three IRS methods, continued for at least five years or until 59½, whichever is later. Changing the payments early brings back the 10% tax on every earlier payment, plus interest.
Also called: 72t, sepp, rule 72t
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CHAPTER · FIRE: FINANCIAL INDEPENDENCE RETIRE EARLY · DEEP DIVETaxes and Reaching Your Money Before 59½CHAPTER · FIRE: FINANCIAL INDEPENDENCE RETIRE EARLY · DEEP DIVEThe Transition: Leaving Work WellRELATED TERMS
SOURCES
- 26 U.S.C. §72(t). U.S. Code.
- Notice 2022-6. Internal Revenue Service.