Sep 1, 2025 · A Substantially Equal Periodic Payment (SEPP) plan allows you to withdraw from retirement accounts before age 59½ without the usual 10% penalty, aligning with IRS Rule 72 (t).

Under Section 72 (t), there is an additional tax of 10% on distributions to the taxpayer if the distribution is made before the taxpayer is age 59 ½. This applies to distributions from qualified retirement plans, …

Oct 6, 2025 · What is a SEPP plan? A SEPP plan is a way to withdraw funds from a retirement account prior to age 59½ using an IRS-approved method to calculate the withdrawal, or payment.

Oct 15, 2025 · One way to dodge this hurdle is the Substantially Equal Periodic Payments (SEPP) strategy, better known by its IRS code: 72 (t). What sounds like a trigonometry calculator is actually a …

Aug 19, 2024 · Substantially equal periodic payments (SEPP) are a series of withdrawals taken from retirement accounts before age 59 1/2, calculated using IRS-approved methods, that allow you to …

It does not apply to non-US investors. One way an investor can take withdrawals from a traditional IRA before the age of 59 1/2 without triggering the 10% early withdrawal penalty tax is to initiate a …

Dec 5, 2023 · However, early retirees can still access their funds by taking what is known as substantially equal periodic payments (SEPP) in an IRA, 401 (k), 403 (b) or other qualified retirement …

Explore how Retirement Distribution Rule 72 (t) and SEPP can help you get clients access to their money when they need it.

Aug 10, 2023 · A SEPP is a strategy that allows individuals to withdraw money from their retirement accounts without incurring the 10% penalty associated with early withdrawals.

May 7, 2024 · In normal years, one important exception to the early distribution penalty is allowed if you are taking withdrawals under a substantially equal periodic payment (SEPP) program. These …