Rule 72(t) Calculator & Plan
IRS Rule 72(t) SEPP is the tax provision that allows individuals to access their qualified retirement funds penalty-free prior to the age of 59 1/2.
If you have $200,000 or more in your 401(k), IRA or other Qualified Retirement Plan, We Can Help. Ask us about our No-Fee, No Market Risk 72(t) investment options. We work with the most well-known 72(t)-friendly custodians to customize and manage your portfolio to execute your penalty-free income plan.
Our complimentary consultation will help you determine if utilizing IRS Rule 72(t) is right for you.
Want to Set Up a 72(t) Series of Equal Periodic Payments (SEPP)?
We are a full-service Wealth Management Firm operating under a fiduciary standard that specializes in this little-known strategy. Let us help you! Learn how to access your 401(k), IRA or other retirement money penalty-free utilizing a properly structured 72(t) SEPP.
Want to know if 72(t) makes sense for you?
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Meet The Spivak Financial Group
Selecting The Spivak Financial Group gives you the experience and knowledge needed to set up and manage your 72(t) SEPP so you can receive your penalty-free income without worry.
Not all financial advisors, online brokerage firms or accountants know much about this specialized area of financial planning. Make sure you work with a financial advisory firm that is experienced and knowledgeable in structuring, managing and monitoring your 72(t) Series of Equal Periodic Payments (SEPP).
72(t) SEPP – What You Need to Know
- The payments must continue for at least five (5) years or until you are age 59½, whichever period is longer.
- You must take the payments at least annually.
- The payments must be substantially equal and generally may not be changed or stopped during the payment term, unless you become disabled or die.
- You may not roll over or convert your 72(t) payments.
- The 72(t) payment plan is only applicable to the IRA from which you calculated your initial payment. Before setting up a 72(t) payment plan, you can split your IRA into two IRAs, if desired. You can use one IRA to calculate and take your 72(t) Series of Equal Periodic Payments, while the other can remain available for future non-72(t) use.
- You can switch to the RMD method from either the amortization or the annuity factor method. This is a one-time irrevocable switch and you must use the RMD method for the remainder of the schedule. Any modifications beyond this, would retroactively trigger the 10% penalty back to the beginning of your 72(t) plan. This can be very costly.
- The IRS has approved 3 methods for calculating 72(t) payments. Those methods are the required minimum distribution (RMD) method, the amortization method, and the annuity factor method. While other methods of calculating the payments are not prohibited, it would be extremely risky to use some other method that is not officially “blessed” by the IRS.
- An extra withdrawal is considered a modification of the payment schedule. Any change in the account balance other than by regular gains and losses or 72(t) distributions, will be also considered a modification and the 10% penalty will be triggered. This means that you cannot add funds to your IRA either through rollovers or contributions.
This is not a DIY project. We handle the process from A-Z. We make it simple to work with the experienced 72(t) Professor Team, powered by The Spivak Financial Group.
Schedule a Complimentary Consultation
See if this approach is right for you. If so, we prepare a custom analysis for you.
Set Up
Establish an IRA with a 72(t)-friendly custodian. We certify the calculation. We manage your account. We handle all of the paperwork.
Penalty-Free Income
Start receiving your 72(t) Series of Equal Periodic Payments. We keep you off the IRS’ mailing list.