One of three processes by which early retirees of any age can get their retirement funds without penalty before turning 50.5. The retiree"s account balance breaks up via an annuity variable chosen from IRS tables to establish a yearly payment amount. The annuity variable is dependant on IRS mortality tables and a rate of interest that"s less than 120% of the national midterm rate. It can"t be altered after the payment amount is established.