Calculate a 72(t) SEPP payment from your account balance and age using the IRS Single Life table and the amortization, RMD or annuitization method.
72(t) SEPP Formula
Substantially equal periodic payments may be calculated under the RMD, fixed amortization, or fixed annuitization method.
RMD method:
RMD payment = balance ÷ life-expectancy factor
Fixed amortization:
Amortization payment = balance × r ÷ [1 − (1 + r)−N]
Fixed annuitization:
Annuitization payment = balance ÷ annuity factor
Variables:
- r is the permitted annual interest rate as a decimal (5% = 0.05)
- N is the applicable life-expectancy factor
- the annuity factor must be derived externally using prescribed mortality and a permitted rate; this calculator does not derive or verify it
- the balance is the account value used for the plan
Payment mode calculates an annual amount from a balance. Balance-needed mode reverses the selected method.
The RMD method is recalculated under its rules, while fixed methods generally establish a fixed amount.
Payments generally must continue until the later of the fifth anniversary of the first payment or the date the taxpayer reaches age 59½. The displayed end age is approximate and does not establish a modification date.
Illustrative Method Differences
The table uses a $500,000 balance, the current age-50 Single Life factor of 36.2, and the stated rates. The annuitization row uses the rounded factor 18.1568 from the IRS age-50, 4% example. These examples do not select or validate a factor for your plan.
| Method on $500,000 | Factor or rate | Illustrative annual payment |
|---|---|---|
| RMD | 36.2 factor | $13,812.15 |
| Fixed amortization | 36.2 years and 3% | $22,831.00 |
| Fixed amortization | 36.2 years and 5% | $30,156.12 |
| Fixed annuitization | 18.1568 factor at 4% | $27,537.89 |
Example Problems
Example 1: Calculate a payment.
Use a $500,000 balance, a verified 36.2-year factor and a 5% fixed-amortization rate: the estimated annual payment is $30,156.12.
Example 2: Solve for a balance.
For a $30,000 annual target, a 36.2-year factor and 5% fixed amortization, the estimated balance is $497,411.51.
Frequently Asked Questions
Which factor should I use?
Use the applicable IRS table and the age attained on the birthday in the distribution year. Under current guidance, Single Life at age 50 is 36.2; 34.2 is a legacy factor. The calculator looks up the Single Life factor from the age you enter; choose to enter a factor if you use another permitted table.
Can I use any interest rate?
No. Under Notice 2022-6, the fixed-method ceiling is the greater of 5% or 120% of the federal midterm rate for either of the two months before the first-payment month. A rate above 5% requires a verified qualifying AFR input here.
Can payments be changed later?
An impermissible change may trigger recapture tax plus interest. A one-time change from a fixed method to RMD is permitted under IRS rules. Monthly equivalents here are averages; installments must total the required annual amount. Normal income taxes may still apply.
Rules reviewed October 20, 2026 against IRS substantially equal periodic payment guidance and Notice 2022-6. Monthly federal midterm rates are not stored here: supply the verified applicable 120% rate for a rate above 5%, and any annuity factor or non-Single Life table factor. A published new monthly rate does not automatically change an established fixed-method schedule.
