A series of substantially equal periodic payments is a series of payments with the payment amount established under one of three permissible, explicitly defined calculation methods based on the balance of the plan or aggregate of plans subject to the plan. A series of equal payments of some arbitrarily chosen sum would not qualify. A SEPP plan must continue without modification (except for a permitted one-time change to the RMD method for determining the periodic distribution amount) for the longer of 5 year or until you reach age 59½, otherwise all amounts previously exempt from the penalty under the plan become subject to a recapture of the 10% penalty, except those distributions for which a different penalty exception applies.
Most of the time a SEPP plan is established with the help of the plan or IRA custodian and the custodian will then report such distributions using code 2 in box 7 of the Form 1099-R.
What you use the money for is irrelevant, except sometimes in the case where you later bust the plan and what you used the money for allows you to qualify for a different penalty exception.
