If a series of substantially equal periodic payments are taken, then distributee avoids the 10% early distribution penalty. In researching this (trying to assist a client who may be subject to the 10% penalty that he already took in 2008), I found that there are 3 ways to calculate the distributable amount. My question is whether that amount can be exceeded? For example, if I use the RMD method and that results in a figure of $10,000, can the distributee actually take out $20,000 per year as long as he/she maintains that level for at least 5 years or age 59 1/2?

p.s. Happy April Fool's Day to all my fellow pension fools.

I don't think so. IRC sec 72(t)(2)(A)(iv) excepts from the 10% early penalty tax "part of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of such employee and his designated beneficiary". If that would be a $10,000 payment per year over life expectancy, a $20,000 would undercut that. At $20,000 per year, that would run out in 1/2 of the person's life expectancy.

Looking at Rev Rul 2002-62, you should be looking at either the fixed amortization method or fixed amortization annualization method, not the MRD method. The trick is to see if you can arrive at your $20K number using acceptible factors. I can't speak to the overall content of the site but the website www.72t.net has a calculator you might use and see how far off you are.