Free tool
Break-the-plan exposure simulator
See the potential federal tax cost of modifying a 72(t) SEPP before its required period ends. A prohibited modification can trigger recapture of the 10% additional tax avoided on prior SEPP distributions, plus interest, and may also subject distributions in the modification year to the 10% additional tax.
Educational tool for understanding IRC §72(t) — not tax, legal, accounting, or investment advice, and no guarantee of IRS compliance. Confirm all results with a qualified professional before acting. Full disclaimer
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What this estimate does not cover
This estimate excludes statutory recapture interest, state tax consequences, and other potential taxes, penalties, or professional costs. Actual federal exposure depends on the specific facts, including the timing and taxable portion of distributions and whether an applicable exception applies. Confirm the facts and tax treatment with a qualified professional before acting.