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Hi Tim
I've not used the 72(t) myself, but when I was in the industry, we used it quite often with young retirees with nice big TIRAs generally from large profit sharing plan and ESOP rollovers.

There are a multitude of rules on setting up and operating a SEPP. You don't want to run afoul of any of them, as there are no established corrective measures you can use to correct past mistakes. A misstep can mean that the entire SEPP gets 'busted' and you'll have to subject all past withdrawals to the 10% early withdrawal penalty and interest on the underpayments. Having said that, the 72(t) is a great..abeit inflexible (once started)....method of generating retirement income before age 59.5 without the 10% penalty.

I wrote a research article on this a couple of years ago that you may find helpful

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