If you receive a distribution from your IRA before you reach age 59 1/2 and the program is calculating the 10% penalty, you may qualify for an exception 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 (up to $10,000)
- the distribution is due to an IRS levy of the qualified plan
- the distribution is a qualified reservist distribution.
If you qualify for any of the exceptions to the 10% penalty listed above, enter the amount that is exempt in the field for "Early Distributions that are not subject to 10% tax" under Part 1, and select the reason from the drop-down menu for the field "Select the reason for exemption".