dmertz
Level 15

Retirement tax questions

No.  Using the money to pay taxes is NOT an acceptable "other reason" for an exception the early-distribution penalty.

The only permissible "other reason" as an exception to the early-distribution penalty on a distribution from an IRA is if the Form 1099-R has code 1, code J or code S but the distribution was actually made after you had reached age 59½.