Substantially Equal Periodic Payments let you tap retirement accounts before 59½ with no 10% penalty.
IRC §72(t)(2)(A)(iv) waives the 10% early-withdrawal penalty on IRA/401(k) distributions if you take Substantially Equal Periodic Payments (SEPP) for the longer of 5 years or until age 59½. Three IRS-approved calculation methods (Rev. Rul. 2002-62, updated by Notice 2022-6): required minimum distribution, fixed amortization, or fixed annuitization. Modify the payment stream = retroactive penalty + interest on all prior withdrawals. Popular for early retirees ('FIRE'), business buyers using retirement funds, and bridge-to-Social Security cash flow.
Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.
Multiply the $10M §1202 exclusion across multiple trusts.
4% corporate tax + 0% capital gains for bona fide residents.
Stack the $500K primary-home exclusion on top of a 1031 deferral.
Convert Traditional to Roth during sabbaticals or business-loss years.
Capitalize property taxes and interest on undeveloped land.
Deduct now, control forever, employ heirs.
Ordinary loss (not capital loss) on failed small biz — up to $100K.
Buy leveraged real estate inside your IRA — tax-deferred or tax-free.