A Substantially Equal Periodic Payment (SEPP) is a method that allows you to withdraw money from your IRA or retirement account before age 59½ without paying the standard 10% early withdrawal penalty. To use this strategy, you must commit to taking equal payments at least once a year for five years or until you turn 59½, whichever is longer.

SEPP is sometimes called the "72(t) exception" after the IRS rule that governs it. It can be a useful lifeline if you need retirement funds early due to circumstances like a career change or financial hardship, but it requires careful planning: modifying or stopping the payments early triggers back penalties and interest.