How Much You Can Take Out With a 72(t) in 2026
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With $400,000 in one IRA at age 52 and a December 2026 start, you can take up to $29,490.54 a year, under fixed annuitization at the 6.11% cap.
The IRS publishes a new federal mid-term rate each month, so the highest rate you can use depends on your start month.
You choose the amount once, and the only change you can make later is one switch to the minimum distribution method.
How much you can take out with a 72(t) depends on your balance, your age, the IRS method and the rate.
72(t) Calculator
Enter your balance, age and rate to see the first year amount under each IRS method.
Estimate your 72(t) payments
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Before the first payment, Dimov Tax runs each IRS method on your actual balance and start date. A CPA or enrolled agent reviews the numbers, and Dimov Tax replies within 24 hours with a fixed quote.
72(t) Amortization Method and the Other IRS Methods
For a series that begins in 2023 or later, you pick one of three methods under Notice 2022-6:
Required minimum distribution. The balance divided by a life expectancy factor, refigured every year, so you take more or less as your balance changes.
Fixed amortization. The balance paid out like a loan over the life expectancy at a rate you choose, the same amount each year.
Fixed annuitization. The balance divided by an annuity factor from an IRS mortality table and a rate you choose, also the same amount each year.
For the fixed methods, you can use the balance on any date from December 31 of the prior year through the first payment. The IRS derives the annuity factor from the mortality rates in Treasury Decision 9930.
72(t) Withdrawal Amount for $400,000 at Age 52
If you turn 52 in 2026 and start payments in December from one IRA with $400,000, using the single life expectancy table, you get these yearly amounts:
| Method and rate | Sum | Yearly amount |
|---|---|---|
| Minimum distribution | $400,000 ÷ 34.3 | $11,661.81 |
| Amortization, 5% | $400,000 × 0.05 ÷ (1 − 1.05 to the power −34.3) | $24,618.08 |
| Amortization, 6.11% | $400,000 ÷ 14.2261 | $28,117.33 |
| Annuitization, 6.11% | $400,000 ÷ 13.5637 | $29,490.54 |
The 34.3 factor is from the single life table in Publication 590-B. At 5%, the annuitization amount is $25,811.11.
You can take each yearly amount in monthly or quarterly payments, as long as you take a payment at least once a year, under 26 U.S.C. 72(t).
Do you want the same payment every year of the series?
NoMinimum distribution
Refigured each year from the balance; the lowest starting amount
YesAmortization or annuitization
Fixed amount, higher with a higher rate
One switch from a fixed method to the minimum distribution method is allowed
Any other change before the later of 5 years or 59½: 10% on earlier payments, plus interest
72(t) Interest Rate Cap for 2026 Start Dates
The rate can be up to the greater of 5% or 120% of the federal mid-term rate for either of the two months before the first payment. The IRS publishes 120% of the federal mid-term rate each month:
For a November start, you can use up to 5.54%, and for a December start, up to 6.11%. The IRS does not say in Notice 2022-6 which compounding column to use. The figures listed are the annual column.
The IRS asks that a series begin within the calendar year its first amount is figured for, so if you start in December, take the first payment by December 31.
- September 2026. 5.40%, under Rev. Rul. 2026-17.
- October 2026. 5.54%, under Rev. Rul. 2026-19.
- November 2026. 6.11%, under Rev. Rul. 2026-21.
Which 72(t) Life Expectancy Table to Use
You choose one of three IRS tables, and the smaller the factor, the larger the payment:
Single life. 34.3 at age 52, the largest minimum distribution.
Joint and last survivor. 40.3 when the beneficiary is also 52, and usable even if the beneficiary is not a spouse.
Uniform lifetime. 46.5 at age 52, for $400,000 ÷ 46.5 = $8,602.15 under the minimum distribution method.
The joint factor depends on the beneficiary’s age. In Notice 2022-6, the IRS uses 40.2 for ages 50 and 55.
Can You Combine IRAs for a 72(t)?
You base each series on one account, and you cannot combine balances from several, under the IRS series questions and answers. If you need a smaller 72(t) withdrawal amount, you can start the series from an IRA holding only part of your savings.
You can use the rest later, including for a second series. For how Fidelity sets up a series, see 72(t) with a Fidelity IRA.
Income Tax on 72(t) Payments
Each payment is still ordinary income on your return, even though you owe no 10% additional tax.
A payer reports each payment on Form 1099-R, with code 2 when it knows the payment qualifies for the exception, under the Form 1099-R instructions.
If box 7 has code 1 instead, you claim exception 02 on line 2 of Form 5329, under the Form 5329 instructions.
If you live in California, you also owe an additional 2½% tax on early distributions, figured on form FTB 3805P, unless your payments qualify for the same exception.
72(t) Calculation Help From a CPA
If you are choosing between a November and a December 2026 start, you can use up to 6.11% with a December start.
Dimov Tax works out the 72(t) calculation, prepares the individual return that reports each payment and plans the withdrawals with its retirement planning team.
Reviewed by George Dimov, CPA. Certified to practice in all 50 states. 15+ years advising on individual, business, state and local tax.