72(t) SEPP Calculator

Take penalty-free early withdrawals from an IRA / 401(k) before 59½ under IRS Rule 72(t). Three IRS-approved methods.

How it works

RMD method: balance ÷ life-expectancy divisor (recomputed yearly). Amortization: level payment over life expectancy at chosen rate. Annuitization: balance ÷ annuity factor. SECURE 2.0 caps the rate at max(120% of federal mid-term AFR, 5%).

Frequently asked questions

Is this guaranteed?

No — these are projections that assume your inputs hold. Real markets and life are variable.

What's the 4% safe-withdrawal rule?

The Trinity Study suggests withdrawing 4% of a balanced portfolio in year one and adjusting for inflation typically lasts 30+ years.

Should I max out my 401(k)?

At minimum, capture the full employer match — that's free money. Beyond that, balance against debt payoff and emergency reserves.

Roth vs. Traditional?

Roth wins if you'll be in a higher tax bracket in retirement; Traditional wins if you'll be in a lower bracket.

When should I start saving?

Immediately. The single biggest variable in retirement success is years of compounding.

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