Substantially Equal Periodic Payments - Early Distributions
You can use this calculator to calculate exceptions from the penalty for early distribution (before age 59 1/2) from an IRA.
To open this calculator, click Calculators in the toolbar, and then click Retirement > Substantially Equal Periodic Payments - Early Distributions in the left panel.
You can export the data as a PDF file or clear all data that you entered. For more information, see Financial calculators.
Example
Your client is retiring at age 40 with $1,000,000 in his IRA. What annual withdrawals are allowed?
Field | Input |
---|---|
Year of distribution | 2007 |
Taxpayer's age | 40 |
IRA balance at beginning of year | $1,000,000 |
Interest rate | 5% |
In this example:
- The required minimum distribution is either $22,935.78 or $17,730.50, depending on the life expectancy table.
- The fixed amortization method shows $56,764.28 or $53,408.25 as the allowed distribution.
- The fixed annuitization method shows $54,061.22 as the allowed distribution.
Note: See Publication 590 and Appendix C for more information on uniform life and required minimum distributions.
Internal notes
6955
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