Substantially Equal Periodic Payment

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Definition: Substantially Equal Periodic Payment

Substantially Equal Periodic Payment

Quick Summary of Substantially Equal Periodic Payment

A method of avoiding penalties on early withdrawals from an IRA. Ordinarily, an individual who withdraws funds from an IRA before age 59.5 pays a 10% penalty on the withdrawal. However, an individual can avoid this penalty by taking substantially equal periodic payments calculated by using a formula developed by the IRS. Individuals who choose to take these payments must continue to do so for five years or until they reach age 59.5, whichever is longer.

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Synonyms For Substantially Equal Periodic Payment

SEPP

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Page URL
https://payrollheaven.com/define/substantially-equal-periodic-payment/
Modern Language Association (MLA):
Substantially Equal Periodic Payment. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
November 08, 2024 https://payrollheaven.com/define/substantially-equal-periodic-payment/.
Chicago Manual of Style (CMS):
Substantially Equal Periodic Payment. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/substantially-equal-periodic-payment/ (accessed: November 08, 2024).
American Psychological Association (APA):
Substantially Equal Periodic Payment. PayrollHeaven.com. Retrieved November 08, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/substantially-equal-periodic-payment/

Definition Sources

Definitions for Substantially Equal Periodic Payment are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 19th November, 2021 | 0 Views.