Updated July 28, 2026. Quick answer: Three: required minimum distribution, fixed amortization and fixed annuitization. The RMD method recalculates annually and moves with the account; the other two lock a fixed dollar figure for the life of the schedule — generally producing more money, with no flexibility if markets fall.
What each method does
| Method | Payment | Trade-off |
|---|---|---|
| Required minimum distribution | Recalculated each year from the balance | Lowest payment, but falls with the market — and rises with it |
| Fixed amortization | Fixed dollar amount, set once | Higher payment, locked regardless of the account |
| Fixed annuitization | Fixed dollar amount via an annuity factor | Similar to amortization; the factor differs |
The risk the fixed methods carry
A fixed payment set at a market peak keeps withdrawing the same dollars after a 30% decline. Because you generally cannot stop or reduce it without busting the schedule, a fixed method can drain an account in a bad sequence with no permitted way to slow down.
There is one escape valve: a one-time switch to the RMD method, which exists precisely for this scenario — see how it works.
How to choose
Take the RMD method if you can live on less and want resilience. Take a fixed method only if you genuinely need the higher payment — and size it against a market that might fall, not the one you are looking at.
Sources
IRC §72(t) (10% additional tax and its exceptions); IRC §72(t)(2)(A)(iv) (substantially equal periodic payments); IRC §72(t)(2)(A)(v) (separation from service at 55); Rev. Rul. 2002-62; Notice 2022-6. Cross-checked July 2026 against professional analyses. Interest rates published for these calculations change monthly and are described structurally here rather than quoted.
This states what the cited authority says. It is not tax advice, and a SEPP schedule is unusually unforgiving of small errors.