Age 59 1/2 is the age. There are exceptions to the penalty but you have to select one in the program.
There are certain
exceptions to this additional 10% tax. The following six exceptions apply to
distributions from any qualified retirement plan:
- Distributions
made to your beneficiary or estate on or after your death.
- Distributions
made because you're totally and permanently disabled.
- Distributions
made as part of a series of substantially equal periodic payments over
your life expectancy or the life expectancies of you and your designated
beneficiary. If these distributions are from a qualified plan other than
an IRA, you must separate from service with this employer before the
payments begin for this exception to apply.
- Distributions
to the extent you have deductible medical expenses that exceed 10% of your
adjusted gross income (7.5% if you or your spouse is age 65 or over)
whether or not you itemize your deductions for the year. The 7.5%
limitation is effective only from January 1, 2013 to December 31, 2016 for
individuals age 65 and older and their spouses. For more information on
medical expenses, refer to Topic 502.
- Distributions
made due to an IRS levy of the plan under section 6331.
- Distributions
that are qualified reservist distributions. Generally, these are
distributions made to individuals called to active duty for at least 180
days after September 11, 2001.
The following
additional exceptions apply only to distributions from a qualified retirement
plan other than an IRA:
-
Distributions made to you after you separated from service with
your employer if the separation occurred in or after the year you reached
age 55, or distributions made from a qualified governmental defined
benefit plan if you were a qualified public safety employee (state or
local government) who separated from service in or after the year you
reached age 50.
- Distributions
made to an alternate payee under a qualified domestic relations order, and
- Distributions
of dividends from employee stock ownership plans.
Look for the screens below for electing the exclusion.
