Are there exceptions to the early distribution penalty on an IRA?
Unless you qualify for an exception, you’ll pay a 10% additional tax penalty on the taxable amount of early distributions from an IRA (traditional or Roth) before reaching age 59 1/2.
There are exceptions to the 10% tax penalty for early distributions:
Death or total and permanent disability
Series of substantially equal periodic payments based on life expectancy
Qualified first-time homebuyer distributions up to $10,000
Qualified higher-education expenses
Certain medical insurance premiums paid while unemployed
Unreimbursed medical expenses that are more than 7.5% of your adjusted gross income
IRS levy
Certain distributions to qualified military reservists called to active duty
Disaster Recovery up to $22,000 to qualified individuals who sustain economic loss by reason of a federally declared disaster where they live
Beneficiary of a deceased IRA Owner
Qualified Birth or Adoption costs up to $5,000 per child
Domestic abuse victim by spouse or domestic partner up to the lesser of $10,000 or 50% of account ( distributions made after 12/31/2023)
Emergency personal expense up to $1,000 (made after 12/31/2023)
Rollovers or eligible distributions contributed to another IRA within 60 days (see also FAQ's: Waivers of the 60-Day Rollover rule)
Returned IRA contributions if withdrawn by extended due date of return, not including earnings on these returned contributions
Once you enter the distribution information from your 1099-R form, we'll help you check for any exceptions that could reduce the tax.
For more information IRS - Exceptions to tax on early distributions
