# What 72(t) payment can I take?

Works out the yearly 72(t) substantially equal periodic payment (SEPP) from a retirement account under the RMD, fixed amortization and fixed annuitization methods of IRS Notice 2022-6.

- Page: https://www.acalculator.org/finance/72t-calculator
- JSON spec: https://www.acalculator.org/finance/72t-calculator.json
- Version: 6914a382f9c1

## Default answer

Example with the default inputs (Method Amortization, Account balance $500,000.00, Age this year 50, Life expectancy table Single Life, Interest rate 5%): Under the Amortization method, a balance of $500,000.00 at age 50 allows a 72(t) payment of $30,156.12 a year.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| method | Method | How the payment is worked out: the required minimum distribution method, fixed amortization, or fixed annuitization. |
| bal | Account balance | The balance on a date from December 31 of last year to the day of the first payment. |
| age | Age this year | Your age on your birthday in the year of the first payment (the distribution year). |
| table | Life expectancy table | The Single Life Table or the Uniform Lifetime Table, both allowed by Notice 2022-6. |
| rate | Interest rate | The rate you choose: at most 5%, or 120% of the federal mid-term rate if that is higher. |
| afr | Federal mid-term rate | Optional: the federal mid-term rate (annual) for either of the two months before the first payment, from the IRS rate tables. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| annual | Yearly payment | The 72(t) payment for the first distribution year. |
| monthly | Monthly equivalent | The yearly payment ÷ 12, if you take it monthly. |
| factor | Divisor used | The life expectancy (RMD), the years of amortization, or the annuity factor (annuitization). |
| maxRate | Highest rate allowed | The greater of 5% and 120% of the federal mid-term rate you typed. |
| redo | Later years | Whether the payment stays fixed or is worked out again each year. |

## Method

RMD: balance ÷ life expectancy. Amortization: balance × i ÷ (1 − (1 + i)^−n), n = life expectancy. Annuitization: balance ÷ Σ v^t × ₜpₓ for t = 0 to 120 − x, with v = 1 ÷ (1 + i) and ₜpₓ the chance of living t more years from the mortality rates.

## Assumptions

- Life expectancy is read for your age on your birthday in the first distribution year; ages 120 and over use the last row.
- Amortization pays at the end of each year over n years (n may be fractional); annuitization pays $1 a year for life from the current age, with nobody living past 120. Notice 2022-6 sets neither timing; these are this page’s conventions.
- The Joint and Last Survivor Table is not offered.
- This is not tax advice: changing the payments before the later of 5 years or age 59½ brings back the 10% additional tax with interest.

## Worked examples

1. method = rmd, bal = $500,000.00, age = 50, table = single gives annual = $13,812.15, factor = 36.2. Source: IRS Notice 2022-6, Determination of substantially equal periodic payments, Internal Revenue Bulletin 2022-5 (§3.01 the three methods; §3.02 the tables, the interest rate and the mortality rates). https://www.irs.gov/irb/2022-05_IRB#NOT-2022-6, retrieved 2026-10-02; Treas. Reg. §1.401(a)(9)-9 (b) Single Life Table and (e) mortality rates, Cornell LII copy. https://www.law.cornell.edu/cfr/text/26/1.401(a)(9)-9, retrieved 2026-10-02.
2. method = rmd, bal = $500,000.00, age = 50, table = uniform gives annual = $10,309.28, factor = 48.5. Source: 500,000 ÷ 48.5 = $10,309.28 (Uniform Lifetime Table, Notice 2022-6 Appendix A); IRS Notice 2022-6, Determination of substantially equal periodic payments, Internal Revenue Bulletin 2022-5 (§3.01 the three methods; §3.02 the tables, the interest rate and the mortality rates). https://www.irs.gov/irb/2022-05_IRB#NOT-2022-6, retrieved 2026-10-02.
3. method = amortization, bal = $500,000.00, age = 50, table = single, rate = 5% gives annual = $30,156.12, factor = 36.2. Source: IRS Notice 2022-6, Determination of substantially equal periodic payments, Internal Revenue Bulletin 2022-5 (§3.01 the three methods; §3.02 the tables, the interest rate and the mortality rates). https://www.irs.gov/irb/2022-05_IRB#NOT-2022-6, retrieved 2026-10-02; IRS, Substantially equal periodic payments (payments continue for the later of 5 years or age 59½; rate at most the greater of 5% or 120% of the federal mid-term rate). https://www.irs.gov/retirement-plans/substantially-equal-periodic-payments, retrieved 2026-10-02.
4. method = annuitization, bal = $500,000.00, age = 50, rate = 5% gives annual = $29,653.39, factor = 16.861477. Source: IRS Notice 2022-6, Determination of substantially equal periodic payments, Internal Revenue Bulletin 2022-5 (§3.01 the three methods; §3.02 the tables, the interest rate and the mortality rates). https://www.irs.gov/irb/2022-05_IRB#NOT-2022-6, retrieved 2026-10-02; Treas. Reg. §1.401(a)(9)-9 (b) Single Life Table and (e) mortality rates, Cornell LII copy. https://www.law.cornell.edu/cfr/text/26/1.401(a)(9)-9, retrieved 2026-10-02.
5. method = amortization, bal = $400,000.00, age = 55, table = single, rate = 5.5%, afr = 4.6% gives maxRate = 5.52%. Source: IRS, Substantially equal periodic payments (payments continue for the later of 5 years or age 59½; rate at most the greater of 5% or 120% of the federal mid-term rate). https://www.irs.gov/retirement-plans/substantially-equal-periodic-payments, retrieved 2026-10-02.

## FAQ

### What is a 72(t) distribution?

Section 72(t) of the tax code adds a 10% tax to most retirement account withdrawals before age 59½. A series of substantially equal periodic payments (SEPP) is an exception: if you take payments worked out by an IRS method, the 10% additional tax does not apply. Income tax still does.

### How long must 72(t) payments continue?

Until the later of 5 years after the first payment or the day you reach age 59½. Changing the payments before then brings back the 10% additional tax on all earlier payments, plus interest.

### Which 72(t) method gives the largest payment?

Usually the fixed amortization method, then fixed annuitization, with the RMD method the smallest. For $500,000 at age 50 at 5%: amortization $30,156, annuitization $29,653 and RMD $13,812 a year.

### What interest rate can I use?

Any rate up to the greater of 5% or 120% of the federal mid-term rate for either of the two months before the first payment. With a mid-term rate of 4.6%, 120% is 5.52%, so up to 5.52% is allowed. The IRS publishes the rates each month; type the one that applies.

### Can I change methods later?

Once: you may switch from the fixed amortization or fixed annuitization method to the RMD method in any later year. Any other change is a modification.

### What balance do I use?

For the fixed methods, the account balance on any date from December 31 of the year before the first payment to the day of the first payment. Adding money, transferring or rolling over the account after that date is a modification.

## Sources

- IRS Notice 2022-6, Determination of substantially equal periodic payments, Internal Revenue Bulletin 2022-5 (§3.01 the required minimum distribution, fixed amortization and fixed annuitization methods; §3.02 the Single Life, Uniform Lifetime and Joint and Last Survivor tables, the interest rate limit, the mortality rates of §1.401(a)(9)-9(e), and the account balance; §3.03 the one-time switch to the RMD method; Appendix A Uniform Lifetime Table from age 10). https://www.irs.gov/irb/2022-05_IRB#NOT-2022-6 (retrieved 2026-10-02)
- IRS, Substantially equal periodic payments: payments continue for the later of 5 years or age 59½; the rate may be at most the greater of 5% or 120% of the federal mid-term rate; a modification brings the 10% additional tax and a recapture tax with interest. https://www.irs.gov/retirement-plans/substantially-equal-periodic-payments (retrieved 2026-10-02)
- Treas. Reg. §1.401(a)(9)-9, Life expectancy and distribution period tables: (b) Single Life Table and (e) mortality rates (Cornell Legal Information Institute copy; the Single Life Table matches IRS Publication 590-B Appendix B, Table I). https://www.law.cornell.edu/cfr/text/26/1.401(a)(9)-9 (retrieved 2026-10-02)