SEPP
Business & Finance abbreviation · Personal Finance
| Stands for | Substantially equal periodic payments |
|---|---|
| Categories | Business & Finance |
SEPP stands for Substantially equal periodic payments, a personal finance abbreviation.
Series of withdrawals from an IRA or retirement plan, calculated under one of three IRS-approved methods, that lets someone under 59½ access money without the 10% early-withdrawal additional tax. Payments must continue for five years or until age 59½, whichever is longer.
Example: To retire at 52, he set up a SEPP schedule on one IRA that pays out about $30,000 a year.
Usage notes
Usually called a 72(t) distribution after Internal Revenue Code section 72(t). Changing the payment schedule early triggers the penalty retroactively on all earlier distributions, plus interest.
Related abbreviations
More personal finance abbreviations
- RMD – Required minimum distribution
- Roth 401(k) – Roth designated account within a 401(k) plan
- Roth IRA – Roth individual retirement account
- RRIF – Registered Retirement Income Fund
- RRSP – Registered Retirement Savings Plan
- SEP IRA – Simplified Employee Pension individual retirement account
- SIMPLE IRA – Savings Incentive Match Plan for Employees individual retirement…
- SIPP – Self-invested personal pension
- SMSF – Self-managed super fund
- Solo 401(k) – One-participant 401(k) plan
- SWR – Safe withdrawal rate
- TFSA – Tax-Free Savings Account