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Best place to get the answer is on the form itself ...
7.5% of AGI. It's defined in section 72(t)(2)(B) of the tax code to be the same as the amount of uncompensated medical expenses deductible on Schedule A determined without regard to whether or not one itemizes deductions. The percentage shown on Schedule A line 3.
Thank you. Can't argue with the form and the law itself. I wonder why they have this wrong on their website. They call out 2021 specifically vs the previous years. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...
See page 25 of 2021 IRS Pub 590-B for the correct information: https://www.irs.gov/pub/irs-prior/p590b--2021.pdf
That IRS web page is simply wrong because it has not been updated to reflect the law change provided in the Taxpayer Certainty and Disaster Tax Relief Act of 2020 which made 7.5% permanent. It was previously scheduled to revert to 10% in 2021.
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