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10 Key Rules for Mastering the SEPP/72(t) Exception to the 10% Early Distribution Penalty for IRAs and Employer Plans FLEXCAS

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Non-Member Price $56.00


One of the challenges faced by advisors is to help their clients minimize income tax on their retirement savings. This includes avoiding the 10% additional tax (early distribution penalty) penalty when possible. Distributions taken by these individuals are subject to a 10% early distribution penalty unless they qualify for an exception. One of the exceptions is distributions taken under a substantially equal periodic Payment (SEPP) program, commonly referred to as a SEPP/72(t) payment because they are governed by Internal Revenue Code Section 72(t). The rules for 72(t) programs have been updated under IRS Notice 2022-6, which is effective for any 72(t) payments commencing on or after January 1, 2023 and may be used for 72(t) payments commencing in 2022. While a 72(t) program can help the owner of an IRA or employer-plan account avoid the 10% early distribution penalty, only `suitable’ individuals should enter such an arrangement.


Notice 2022-6. SEPP Penalty Exception. The Age 59 1/2 Factor



Designed For

CPAs and other tax professionals.


When the 10% early distribution penalty applies to distributions. How to identify suitable candidates for the 72(t)-payment program. The compliance requirements for a 72(t)-payment program.




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  • Denise Appleby, Western CPE

Non-Member Price $56.00

Member Price $49.00