Are there any circumstances when a taxable distribution taken from my IRA before age 59 will avoid the 10% penalty?
Yes, there are certain situations where a distribution prior to age 59 is not subject to the penalty. These situations include distributions due to death, disability or under a series of substantially equal periodic payments over your life. Also, the penalty does not apply if the distribution is taken to pay for qualified higher education expenses, qualified first-time home purchases (up to $10,000) or certain health and medical expenses.
Related Questions
- Under what circumstances can I take an early distribution (before age 59-½) from my Traditional IRA without an early withdrawal tax penalty?
- I want to retire before age 59. How do I avoid the 10% early distribution penalty on retirement payments from my 401k?
- Are there any circumstances when a taxable distribution taken from my IRA before age 59 will avoid the 10% penalty?
