If an individual takes a distribution from their IRA, the 10% penalty will not apply if they are disabled. The standard for disability for this purpose is a strict one and it is difficult to meet. The IRA owner must be unable to engage in any gainful activity because of a physical or mental condition. The condition must be expected to last a long or indefinite period of time or be expected to result in death. In other words, the disability must be total and permanent.
