Substantially Equal Periodic Payment (SEPP)
With substantially equal periodic payments, the funds are placed into an SEPP plan
that pays the individual annual distributions for five years or until he or she turns 59½, whichever comes later.
Because the IRS requires individuals to continue the SEPP program for a minimum of five years,
this is not a solution for those who seek penalty-free short-term access to retirement funds.
A plan that allows individuals who have invested in an IRA or another qualified retirement plan
to withdraw funds prior to the age of 59½ and avoid income tax and early-withdrawal penalties.