Pre-59 1/2 Penalty-free Withdrawals

by Hugh Chou The IRS has this one special rule that lets people withdraw from IRA's and other such deferred accounts (401(k)'s,403(b)'s) before age 59 1/2 without the extra 10% penalty if you make withdrawals in "Substantially Equal" amounts. What this means is that you must increase the annual withdrawals using "reasonable" interest rates (Look here for more details.) I will let you select a reasonable increase from between 3 to 9% each year. I am also pulling the withdrawal out in one big chunk at the beginning of the year to use a worst case scenario.

Have fun!

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

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 %

In the 15 years from now until age 50 your $ 100000 will grow to $ 339974

AgeStarting BalanceEarningsWithdrawal Ending Balance
50 339974.0020473.3125000.00 335447.31
51 335447.3120114.0826000.00 329561.39
52 329561.3919663.8927040.00 322185.28
53 322185.2819114.1428121.60 313177.81
54 313177.8118455.5429246.46 302386.89
55 302386.8917678.0930416.32 289648.65
56 289648.6516771.0231632.98 274786.70
57 274786.7015722.7532898.29 257611.15
58 257611.1514520.8034214.23 237917.72
59 237917.7213151.7735582.80 215486.70
60 215486.7011601.2437006.11 190081.83