An IRS rule that allows penalty-free early withdrawals from retirement accounts before age 59½ if you take "substantially equal periodic payments" (SEPPs) based on your life expectancy. Payments must continue for at least five years or until you reach 59½, whichever is longer. Breaking the schedule results in retroactive penalties on all early distributions. Three calculation methods are available: required minimum distribution, fixed amortization, and fixed annuitization.
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Rule 72(t)
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