How Do You Make An Early Exempt IRA Withdrawal?
In most cases, you must wait until you are at least 59½ to withdraw your money from an IRA without having to pay the 10 percent penalty on unqualified withdrawals. However, Traditional IRAs have several exceptions that allow you to take out the money early and penalty-free. These include include medical expenses that exceed 7.5 percent of your adjusted gross income, up to $10,000 for a first-time home purchase or if you become permanently disabled. If you take an early withdrawal, you must file the Internal Revenue Service’s Form 5329 along with your Form 1040 or Form 1040 NR. Enter the total amount of your IRA withdrawal on Line 1 of Form 5329. Enter the amount of the withdrawal that is eligible to be withdrawn penalty-free on Line 2. Write the number that corresponds to your reason for the early withdrawal in the space provided to the left of Line 2. For example, if you were claiming an early withdrawal for medical expenses, you would write 05. You can find a complete list of reasons
