72t Calculator

For a 72(t) series this is the account balance determined under section 3.02(d) of Notice 2022-6.
An effective annual rate, applied to whatever is left in the account.
Set above zero to hold the withdrawal constant in real terms; the cash amount then rises each period.
Used when working out how much you can withdraw.
Used when working out how long the money lasts. This is the amount per withdrawal, not per year.
Ages below 59.5 attract the 10% additional tax on an early distribution.
Only used with the Joint and Last Survivor Table.
Notice 2022-6 caps this at the greater of 5% and 120% of the federal mid-term rate.
Optional. The section 1274(d) rate for either of the two months before payments begin; supply it to see the ceiling above 5%.
The present value of an annuity of 1 per year at your age, derived from the mortality rates of Treas. Reg. 1.401(a)(9)-9(e) at your chosen interest rate. Required only for the fixed annuitization method.
The taxable distribution, before tax and withholding.
Defaults to the 20% mandatory withholding on an eligible rollover distribution from an employer plan.
Annual 72(t) payment
30,156.12
Retirement Withdrawal Calculator
Sustainable withdrawal each period
2,513.01
Sustainable withdrawal a year
30,156.12
Monthly 72(t) payment
2,513.01
Distribution period used
36.2 years
Interest rate used
5.000 %
Maximum rate Notice 2022-6 allows
5.000 %
Method used
Fixed amortization (Notice 2022-6 section 3.01(b))
Worked out from IRS Notice 2022-6, Substantially equal periodic payments under section 72(t)(2)(A)(iv) and 4 other sources.
A series of substantially equal periodic payments must generally continue for the longer of five years or until age 59.5. Modifying it before then triggers the recapture tax of IRC 72(t)(4) on every payment already taken, with interest.
No federal mid-term rate was supplied, so the ceiling shown is the 5% floor. Look up the section 1274(d) rate for either of the two months before payments begin if you want to use a higher rate.
Whether a distribution is permitted, whether any exception to the 10% additional tax applies, and what a series of substantially equal periodic payments must look like to avoid the recapture tax of IRC 72(t)(4) are tax determinations this tool does not make. The withdrawal projections assume a constant rate of return, which no real portfolio delivers. Confirm your position with a qualified tax adviser before acting.

How this is worked out

2 steps
  1. Single Life Table, age 50 gives a distribution period of 36.2 years
  2. Level amortization of 500000 over 36.2 years at 5% = 30156.117425445133 a year

Results are general information, not financial, tax, legal, medical or engineering advice.