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 a certain amount of your adjusted gross income
• IRS levy
• Certain distributions to qualified military reservists called to active duty
• Beneficiary of a deceased IRA Owner
• Qualified Birth or Adoption costs
• Domestic abuse victim
• Emergency personal expense up to $1,000

Once you enter the distribution information from your 1099-R form, we'll help you check for any exceptions that could reduce the tax.