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Glossary

72(t) / SEPP

Penalty-free early withdrawals from a retirement account.

Rule 72(t) lets you take substantially equal periodic payments (SEPP) from an IRA or 401(k) before age 59½ without the 10% early-withdrawal penalty.

The payments must continue for at least five years or until age 59½, whichever is longer — modifying them early triggers retroactive penalties.

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