are there any penalties associated with sepp plans 
there are generally no penalties associated with sepp plans but you will be on the hook for penalties and interest if you decide to cancel the plan before you reach the minimum five year holding period or before you turn 59 whichever comes later 4the bottom linethere are rules in place to protect your retirement nest egg until you need it the most as such you can t make early withdrawals from your accounts without incurring penalties but there are exceptions substantially equal periodic payment programs allow you to use your retirement accounts if an exceptional circumstance arises such as an illness but there are certain rules you must follow the irs has certain calculation methods you must use to determine your distributions and you must take these payments for a certain length of time if you re unsure of how the program works or if it s right for your situation be sure to consult a financial or retirement specialist 