What is rule 72(t) rule 72(t) is a section of the IRS code that allows for penalty free withdrawals from your traditional retirement account prior to age 59 and a half. This means that those who are wanting to retire early or who want more freedom to transition assets out of their tax deferred bucket into their tax free bucket prior to age 59 and a half can do it without having to pay the IRS the normal 10% early withdrawal penalty. But as with anything the IRS offers, there's a number of rules and regulations one should know before they take the plunge and start taking advantage of the loss surrounding the 72(t). I'll be covering the top 10 things you need to know about a 72(t)