72t Calculator – IRA Distributions Without A Penalty

72(T) Distributions Early IRA Distributions Without A Penalty

Distribution Amount

Gap To Budget %

Gap To Budget $

72(T) Calculator Inputs

72 t Calculator Tutorial – Withdrawing From Your IRA Early

Calculator User Inputs – Early Withdrawals

Account Balance: Enter the balance of your Retirement Accounts (per-taxed accounts such as 401k or IRA account).

Interest Rate %: The interest rate % should be no greater than 120% of the Federal Mid-Term rate for either of the two months prior to the start of your distributions. As of March 2019, the Federal Mid-Term Rate was at 3.10%, which the IRS has approved.

Beneficiary Age: You should use the age you will be turning on the year your plan on receiving the distributions.

Monthly Budget: Enter the amount you expect to spend each month during retirement. Use our online budget calculator to get a better estimate.

Calculator Outputs –

Section 1 – Defining Distribution Methods:

Required Minimum Distribution (RMD):

Fixed Amortization: The interest rate used will be added to this title.

Section 2 – Distribution Amount:

We determine the annual figure and a monthly based on single life expectancy (using the IRS life expectancy table).

These are the series of payments you will take based on the required minimum distribution method and the fixed amortization method for 72 t early distribution.

The IRA owner should always consult with a tax specialist. Additional amounts taken out can result in an early distribution penalty.

Section 3 – Gap To Budget %:

This is calculated by taking the Distribution Amount and dividing it by your expected budget.

Example: You have a monthly budget set at $2,000 ($24,000 annual) and your distribution amount is $593 a month ($7,110 annual). You would still need an additional $1,407 ($16,890 annual) to cover your expense. 30% of your expense would be cover by the 72t distribution, while the remaining 70% would need to come from another income source.

Section 4 – Gap To Budget $:

This is calculated by taking the 72t distribution amount and subtracting your expected budget.