what is substantially equal periodic payment sepp 
substantially equal periodic payment sepp is a method of distributing funds from an individual retirement account ira or other qualified retirement plans unless you still work for your employer prior to the age of 59 that avoids incurring irs penalties for the withdrawals typically an individual who removes assets from a plan prior to that age will pay an early withdrawal penalty of 10 of the distributed amount 1funds in sepp plans are withdrawn penalty free through specified annual distributions for a period of five years or until the account holder turns 59 whichever comes later income tax must still be paid on the withdrawals 2