If you qualify for an exemption from the 10% penalty, you can complete Form 5329. You may qualify for an exemption if:
- You have unreimbursed medical expenses
- The distributions are not more than the cost of your medical insurance
- You are disabled
- You are the beneficiary of a deceased IRA owner
- You are receiving distributions in the form of an annuity
- The distributions are not more than your qualified higher education expenses
- You use the distributions to buy, build or rebuild a first home (limited to $10,000)
- The distribution is due to an IRS levy of the qualified plan
- The distribution is a qualified reservist distribution
See the 5329 instructions for complete details.