Sepp Calculator
Sepp calculator works out Sustainable withdrawal each period and Sustainable withdrawal a year from Balance available, Expected annual return and Annual inflation. The default figures on this page give annual 72(t) payment of 30,156.12; change any entry and the result, the working and the sources update together.
Your figures
Updates as you typeHow this is worked out
2 steps
- Single Life Table, age 50 gives a distribution period of 36.2 years
- Level amortization of 500000 over 36.2 years at 5% = 30156.117425445133 a year
Figures from IRS Uniform Lifetime Table (Notice 2022-6), 2022 edition and IRS life expectancy tables, 2022 edition, checked 31 August 2026. Its 5 worked examples are re-run on every release, last on 15 September 2026. What changed · how reference data is kept current
Sources and references
5 sources
Keep this result
Save it, change one figure, then compare the two
The calculation stays free. Save this scenario, adjust one assumption, save that too, and put them side by side to see exactly what the change costs you. A free account keeps 5 scenarios and 2 comparisons; Personal makes both unlimited and adds exports and private links. Nothing is saved unless you press Save.
What the sepp calculator calculates
Works out the level withdrawal a retirement pot can support, how many years a pot lasts at a chosen withdrawal rate, a section 72(t) series of substantially equal periodic payments under any of the three IRS methods, and the income tax, 10% additional tax and withholding on an early distribution.
How to use this sepp calculator
Enter Balance available, Expected annual return, Annual inflation and Withdrawal frequency. Sustainable withdrawal each period updates as you type. Change one figure at a time to see what drives the result.
How the result is worked out
Open “How this is worked out” beside the result for the step-by-step calculation behind Sustainable withdrawal each period, Sustainable withdrawal a year and Years the money lasts.
The method follows IRS Notice 2022-6, Substantially equal periodic payments under section 72(t)(2)(A)(iv), Treas. Reg. 1.401(a)(9)-9, Life expectancy and distribution period tables (T.D. 9930), IRC 72(t)(1) - 10% additional tax on an early distribution from a qualified retirement plan, IRC 3405(c)(1) - 20% mandatory withholding on an eligible rollover distribution and Ordinary annuity relations: W = B r / (1 - (1+r)^-n) and n = -ln(1 - r B / W) / ln(1+r).
What you can compare
Change one input at a time to see how it affects Sustainable withdrawal each period, Sustainable withdrawal a year and Years the money lasts. The inputs you can vary are Balance available, Expected annual return, Annual inflation, Withdrawal frequency, Withdrawals are taken and Years the money must last.
Understanding Sustainable withdrawal each period, Sustainable withdrawal a year and Years the money lasts
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.
Results are general information, not financial, tax, legal, medical or engineering advice. Check any decision that matters with a qualified professional.
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Frequently asked questions
How to calculate SEPP payments?
Works out the level withdrawal a retirement pot can support, how many years a pot lasts at a chosen withdrawal rate, a section 72(t) series of substantially equal periodic payments under any of the three IRS methods. Open “How this is worked out” beside the result to see each step for your own figures.
Is SEPP a good idea?
Works out the level withdrawal a retirement pot can support, how many years a pot lasts at a chosen withdrawal rate, a section 72(t) series of substantially equal periodic payments under any of the three IRS methods. On the figures this page opens with — balance available 500,000, expected annual return 5% and annual inflation 0% — the annual 72(t) payment is 30,156.12. Put your own figures in their place and the working updates beside the result.
What is the SEPP 5 year rule?
On the figures this page opens with — balance available 500,000, expected annual return 5%, annual inflation 0% and withdrawal each period 30,000 — the annual 72(t) payment is 30,156.12. No single number fits everyone: change any figure above and the answer updates as you type, with each step of the arithmetic beside it.
Do all 401k plans allow SEPP?
It needs Balance available, Expected annual return, Annual inflation, Withdrawal frequency, Withdrawals are taken and Years the money must last. Nothing else is required, and the figures stay in your browser.
What information do I need for the sepp calculator?
You need Balance available, Expected annual return, Annual inflation, Withdrawal frequency, Withdrawals are taken, Years the money must last, Withdrawal each period and Your age now. The page opens with default figures that give annual 72(t) payment of 30,156.12, so you can see the scale before entering your own.
What does this sepp calculator show?
It shows Sustainable withdrawal each period, Sustainable withdrawal a year, Years the money lasts, Months the money lasts, Age when the money runs out, Total withdrawn, Investment growth over the period and Balance left at the end, with the working and any warnings for your entries.