Question 1

What is a 72(t) SEPP plan?

Accepted Answer

A 72(t) Substantially Equal Periodic Payment plan is an IRS-approved method for taking early distributions from a retirement account without the 10% early withdrawal penalty.

Question 2

Who qualifies for a 72(t) distribution?

Accepted Answer

People under age 59½ with a qualifying retirement account may qualify, subject to the IRS calculation and payment-schedule requirements.

Question 3

How long must I take 72(t) distributions?

Accepted Answer

Distributions must continue for the longer of five years or until the account owner reaches age 59½.

72(t) SEPP Questions & Answers

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