IRS issued Rev. Rul. 2002-62 on October 4, 2002 clarifying how a qualified plan owner may set up payments to satisfy the exception to the 10% penalty. Payments are considered to be Substantially Equal Periodic Payments if they are made based on one of three calculation methods: the Life Expectancy Method, the Amortization Method, and the Annuitization Method. Other methods may be allowed but would require a Private Letter Ruling (PLR) from the IRS. Refer to the IRS published article regarding Frequently Asked Questions for further information.