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Pre-59 1/2 Penalty-free Withdrawals


The IRS has a special rule that lets people withdraw from IRA's and other deferred accounts, such as 401(k), 403(b), before age 59 1/2 without the extra 10% penalty for withdrawals in "Substantially Equal" amounts. What this means is that you must increase the annual withdrawals using "reasonable" interest rates. Select a reasonable increase from between 3 to 9% each year. Withdrawal is pulled out in one big chunk at the beginning of the year.

Reasonable interest must be between 3 and 9%
Pre-withdrawal yield must be between 4 and 20%
Post-withdrawal yield must be between 4 and 10%

Current Age:
Withdrawal Age:
IRA Balance:
Initial Annual Withdrawal:
IRA Yield: (Before withdrawals)
IRA Yield: (During withdrawals)
"Reasonable" IRS Interest:

In the 15 years from now until age 50, your $ 100000 will grow to $ 100000

AgeStarting BalanceEarningsWithdrawal Ending Balance
50 100000.00 0.0025000.00 75000.00
51 75000.00 0.0025000.00 50000.00
52 50000.00 0.0025000.00 25000.00
53 25000.00 0.0025000.00 0.00
54 0.00 0.00 0.00 0.00
55 0.00 0.00 0.00 0.00
56 0.00 0.00 0.00 0.00
57 0.00 0.00 0.00 0.00
58 0.00 0.00 0.00 0.00
59 0.00 0.00 0.00 0.00
60 0.00 0.00 0.00 0.00