Are there any exceptions to the early withdrawal penalty?
Yes. If the account owner dies, is declared legally incompetent, or becomes disabled, then early withdrawal penalties are waived. If the account is an IRA Certificate, the account owner may withdraw any portion of it within 7 days after establishing the account without penalty. If the account is a Traditional IRA Certificate, the account owner may also withdraw funds without penalty after reaching the age of 70 ½. We also allow members a 10-day grace period after maturity to withdraw funds without being charged an early withdrawal penalty.
