72(t) SEPP Calculator: Switch to the RMD Method

Compare keeping your fixed 72(t) payment with making the one-time switch to the RMD method, and find the exact month your substantially equal periodic payments can stop. Pair this with the free roth ira calculator for a fuller picture before you make a decision.

Your SEPP schedule

Birth month

Birth year

First payment month

First payment year

Account balance used

Any date from December 31 before the first payment to the payment date.

Starting method

Interest rate

Life expectancy table

For annuitization, Joint uses both lives; the other two use your life only.

Return in the first year

Try a loss to see why the switch exists.

Return after that

Switch to RMD in payment year

2 or later; 0 to stay fixed.

Table after the switch

Your results

Fixed payment

–

RMD payment in the switch year

–

Balance at the end, staying fixed

–

Balance at the end, after switching

–

Your modification period

Fifth anniversary of the first payment–

You reach 59½–

Schedule must hold until–

Annual payments required–

Total paid, staying fixed–

Total paid, after switching–

Allowed without the 10% coming back

One switch from fixed amortization or annuitization to the RMD method, for that year and every year after.
The account running out because of the method you follow.
Death or disability.

Counts as a change before the period ends

Taking more or less than the schedule, or skipping a year.
Adding money to the account, other than investment growth.
Moving part of the balance to another plan or IRA, or rolling a payment over.
Switching back from the RMD method, or switching a second time.

Staying fixed vs switching to RMD

One payment per calendar year, taken at the end of the year after that year’s return, for every year the schedule must hold.

Payment	Year	Age	Fixed payment	Balance, fixed	Payment with switch	Balance, switch

Results are estimates for educational purposes and are not financial, tax or legal advice.