Sam's Economics

See what your SEPP payment would actually be

Run your balance and age through all three IRS-approved methods, and see exactly how long you'd be locked in.

Your numbers

Adjust each slider. Results update instantly.

Current age 52

4559

Account balance $850,000

$100k$3M

Interest rate you use 5.5%

1%8%

Allowed: up to the greater of 5% or 120% of the federal mid-term rate for either of the two months before your first payment (about 5.5% in fall 2026). Check the current figure.

Which method are you considering?

SELECTED METHOD PAYMENT

— / year

Adjust the sliders to see your estimated payment under each method.

RMD Method

—

Recalculated every year — smallest, most flexible in size

Fixed Amortization

—

Level payment, same amount every year

Fixed Annuitization

—

Uses an IRS mortality table; usually close to amortization. Shown here as an approximation — have a CPA calculate it.

Your duration commitment

The longer of 5 years or until age 59½ — whichever is further away.

5-year rule would end at age —

59½ rule would end at age 59.5

You're locked in until age —

What one change would cost

Changing the payment before the lock-in ends breaks the plan. Pick the year and the extra amount.

Change happens in plan year 3

Extra withdrawal that year $1,500

Penalty on earlier years (recapture)—

Interest on that penalty (about 7% a year)—

10% on that year's withdrawals—

Due with that year's taxes—

10% on later payments before 59½, if you keep taking them—

Total penalties—

Before you start

1Confirm the current IRS-allowable interest rate with a CPA — it changes monthly.
2Make sure you have a separate cushion outside this account for emergencies.
3Understand you cannot modify this payment for any reason short of death or disability.

Get the full breakdown — all three methods explained, the duration-rule math for different starting ages, and the exact questions to bring to a CPA.

Download the PDF guide

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Illustrative estimate only, not tax or legal advice. Defaults: $850,000, age 52, 5.5% (the greater of 5% or 120% of the federal mid-term rate, fall 2026), IRS Single Life Expectancy Table; annuitization is shown as an approximation. Actual SEPP/72(t) payments depend on official IRS tables and the specific allowable rate at the time you set up your plan. Always confirm exact figures with a fee-only financial advisor or CPA, and remember that modifying a SEPP payment before your required period ends can retroactively trigger penalties and interest on every prior distribution.