In case you don’t know what a 72t distribution is, this is shorthand for the Internal Revenue Code Section 72 part t (or IRC §72(t) for short), and the most popular provision of this code section is known as a Series of Substantially Equal  Periodic Payments – SOSEPP is the acronym.

Enough about the code section already. What exactly is this thing? A SOSEPP is a method by which you can access your IRA funds prior to age 59½. In order to take advantage of this rule, you determine the amount of the annual distribution from your IRA (this is done in a prescribed manner, more on this in a bit) and then begin taking the distributions. Once you start the SOSEPP, you have to keep it going for the longer of five years or until you reach age 59½.

Methods of Distribution

There are three ways that you can

Keep reading this article on Financial Ducks In A Row.