72(t) Rule: Substantially Equal Periodic Payments
Three Methods to Avoid 10% Penalty Clearly Explained - Recorded 9/4/25
One often overlooked exception to the 10% early withdrawal penalty is taking distributions as a series of substantially equal periodic payments. This course will review the requirements for utilizing the exception, how to calculate the payment amounts, and how this can be used as a tax planning opportunity for taxpayers.
Learning Objectives
- List the requirements that must be met for the substantially equal periodic payments exception.
- Describe the IRS methods for calculating the required distribution amounts.
- Summarize the circumstances that cause the exception to no longer apply.
- Describe the consequences of failing to take the required distributions.
Education Information
IRS Program Number: NMVBP-T-00308-25-S
Credit hour: 1 NASBA CPE / 1 IRS CE
Prerequisite: None
Advanced Preparation: None
Program Level: Basic
Delivery Method: QAS Self-Study (NASBA); On-Demand (IRS)
Field of Study: Taxes (NASBA); Federal Tax Topics/Federal Tax Related Matters (IRS)
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Course expires one year after purchase.
Instructor: Thomas Gorczynski, EA, CTP, USTCP Learn more about our instructors here.
All continuing education is provided by Gregory and Associates doing business as Compass Tax Educators. Click here for more information regarding our refund, education and complaint policies.
