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.

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 …

Sep 1, 2023 · SEPP, which stands for substantially equal periodic payments, is a little-known program that can enable you to withdraw money from your IRA or 401 (k) before age 59.5 without facing an …

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 …

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 …

Mar 15, 2024 · Substantially Equal Periodic Payments (SEPP) refer to a systematic and consistent series of withdrawals from an individual retirement account (IRA) or other qualified retirement plan …

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