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IRA Early Withdrawal Penalty Exceptions

Withdrawals prior to age 59 1/2 may not incur a penalty if the withdrawal is due to one of the following scenarios:

  • Higher education expenses

    You can withdraw assets to pay expenses for tuition, fees, books, supplies and room-and-board for you or your family members (must be enrolled at least part time).

  • First-time home purchase

    If you have not owned a home in the past two years, you can take advantage of the $10,000 lifetime withdrawal limit to buy, build or rebuild a first-time home for you, your parents, children or grandchildren.

  • In the event of death of account owner

  • If your withdrawal is part of a series of substantially equal periodic payments

  • If you are making health-insurance premium payments and you are unemployed

  • If paying for medical expenses that exceed 7.5% of your Adjusted Gross Income (AGI)

  • If paying an IRS levy

  • Disability

  • Roth IRA Conversion

  • Qualified Reservist Distribution