Unfortunately, No. Losing your job, although a personal disaster, is not considered an exception to the 10% penalty on retirement accounts.
The only one you may be able to use is the Health Insurance Premium Alternative.
The exceptions are:
- Unreimbursed medical expenses that are more than a certain percentage of your adjusted gross income
- Health insurance premiums after you have received unemployment compensation (or would have been eligible to receive unemployment compensation but for your self-employed status)
- Made because you're totally and permanently disabled
- You because you are terminally ill
- If you inherited the retirement account
- Made as part of a series of substantially equal periodic payments for your life.
- Higher education expenses
- Not in excess of $10,000 used in a qualified first-time home purchase
- Made directly to the government to satisfy an IRS levy of the IRA under section 6331 of the Code
- A qualified reservist distribution (Military activation service)
- Not in excess of $5,000 and the distribution is a qualified birth or adoption distribution
- Federal declaration of certain emergencies and disasters
Please see the IRS publication: Additional tax on early distributions from traditional and Roth IRAs
Please contact us again with any additional questions.
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