Updated with IRS Notice 2022-6: Distributions from IRAs and employer sponsored retirement plans are subject to a 10% additional tax if taken before age 59 ½. This additional tax (or early distribution penalty) is waived if the amount qualifies for an exception to the penalty. Distributions taken under a substantially equal periodic payment (SEPP) is one of the exceptions to the 10% early distribution penalty.

Distributions must meet certain specific requirements to qualify as SEPPs. And once the program starts, it must continue for 5-years or until the account owner reaches age 59 ½ .

Use this booklet to learn about the SEPP/72(t) exception to the 10% early distribution penalty, including the strategies that can be used to maximize efficiency.
DOWNLOAD A COPY OF THE TABLE OF CONTENTS BELOW

TOC-SEPP.pdf 130.34 KB