IRS Rule 72t

According to Investopedia

An Internal Revenue Service (IRS) rule that allows for penalty-free withdrawals from an IRA account. The rule requires that, in order for the IRA owner to take penalty-free early withdrawals, he or she must take at least five “substantially equal periodic payments” (SEPPs). The amount depends on the IRA owner’s life expectancy calculated with various IRS-approved methods.

The IRS Rule 72t is a great way to access money inside qualified plans before age 59 1/2. By accessing this money in “substantially equal periodic payments,” you avoid the 10% penalty normally associated with early withdrawal.


About The Author


By Jake | Follow Jake on Twitter