Unfortunately, yes.
Generally, if you are under age 59-1/2, you must pay a 10%
additional tax on the distribution of any assets (money or
other property) from your pension plan or traditional IRA. Distributions before
you are age 59-1/
2 are called early distributions.
The IRS Retirement Topics - Exceptions
to Tax on Early Distributions lists the exceptions to the additional tax:
- Separation from service in or after the year reaching age 55 (age 50 for qualified public safety employees)
- Equal periodic payments
- Total and permanent disability/death
- Medical expenses [if the amount of unreimbursed medical expenses >7.5% AGI or 10% if under age 65]
- Paid alternate payee under a QDRO
- Unemployed individuals for health insurance premiums (only IRAs)
- Higher education expenses (only IRAs)
- First home purchases (only IRAs)
- IRS levy of the qualified plan
- Qualified distributions to reservists
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