Q. What if I run out of money? 

A. Plans that run out of funds do not incur the 10% penalty tax. Revenue Ruling 2002-62, 2.03(a) states… “If, as a result of following an acceptable method of determining substantially equal periodic payments, an individual’s assets in an individual account plan or an IRA are exhausted, the individual will not be subject to additional income tax under 72(t)(1) as a result of not receiving substantially equal periodic payments and the resulting cessation of payments will not be treated as a modification of the series of payments.”