No, If you took a distribution from your 401(k) or another qualified retirement plan (excluding IRAs) before you turned 59 1/2, you'll pay a 10% early withdrawal penalty, with a few exceptions:
- Death, or total and permanent disability - being on SS Disability does not qualify as a permanent disability
- Qualified Domestic Relations Order
- Series of substantially equal periodic payments based on life expectancy
- Dividend pass through from an ESOP
- IRS levy
- Unreimbursed medical expenses that are more a certain amount of your adjusted gross income
- Certain distributions to qualified military reservists called to active duty
- Separation from Service if age requirement is met
Exceptions to Tax on Early Distributions - See this link for a full list of plans and exceptions allowed.
A person is permanently and totally disabled if both of the following apply:
- He or she cannot engage in any substantial gainful activity because of a physical or mental condition, and
- A doctor determines that the condition has lasted or can be expected to last continuously for at least a year or can lead to death.
This information is found in Publication 501, Dependents, Standard Deduction, and Filing Information.
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