SWP Withdrawal Calculator

Balance available For a 72(t) series this is the account balance determined under section 3.02(d) of Notice 2022-6.

Expected annual return (%)An effective annual rate, applied to whatever is left in the account.

Annual inflation (%)Set above zero to hold the withdrawal constant in real terms; the cash amount then rises each period.

Withdrawal frequency

Withdrawals are taken

Years the money must last (years)Used when working out how much you can withdraw.

Withdrawal each period Used when working out how long the money lasts. This is the amount per withdrawal, not per year.

Your age now (years)Ages below 59.5 attract the 10% additional tax on an early distribution.

72(t) method

Life expectancy table

Designated beneficiary's age (years)Only used with the Joint and Last Survivor Table.

72(t) interest rate (%)Notice 2022-6 caps this at the greater of 5% and 120% of the federal mid-term rate.

Federal mid-term rate (from the IRS rate ruling) (%)Optional. The section 1274(d) rate for either of the two months before payments begin; supply it to see the ceiling above 5%.

Annuity factor (fixed annuitization method)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.

Gross amount withdrawn The taxable distribution, before tax and withholding.

Your federal marginal tax rate (%)

Your state tax rate (%)

Withholding applied by the plan (%)Defaults to the 20% mandatory withholding on an eligible rollover distribution from an employer plan.

An exception to the 10% additional tax applies

Years the money lasts

13.40 years

Retirement Withdrawal Calculator

Sustainable withdrawal each period

10,000.00

Sustainable withdrawal a year

120,000.00

Months the money lasts

160.8 months

Age when the money runs out

73.4 years

Total withdrawn

1,607,804.46

Investment growth over the period

607,804.46

Balance left at the end

0.00

Method used

Ordinary annuity, solved for the number of payments

Worked out from IRS Notice 2022-6, Substantially equal periodic payments under section 72(t)(2)(A)(iv) and 4 other sources.

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

4 steps

Real rate per period = 0.00643403011000343
Growth alone supports 80000 a year at this balance
n = -ln(1 - r x balance / withdrawal) / ln(1 + r) = 160.77989621790223 periods
That is 13.398324684825186 years at 12 withdrawals a year

Year-by-year balancetable

year	withdrawn	growth	closingBalance
1	120,000	75,661.14	955,661.14
2	120,000	72,114.03	907,775.16
3	120,000	68,283.15	856,058.31
4	120,000	64,145.8	800,204.11
5	120,000	59,677.46	739,881.57
6	120,000	54,851.66	674,733.23
7	120,000	49,639.79	604,373.03
8	120,000	44,010.98	528,384.01
9	120,000	37,931.86	446,315.86
10	120,000	31,366.4	357,682.27
11	120,000	24,275.72	261,957.98
12	120,000	16,617.77	158,575.76
13	120,000	8,347.2	46,922.95
13.4167	47,804.46	881.51	0

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