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:
- Separation form service after age 55- when the separation from service occurs in or after the year you reach age 55
- Series of equal payments- payments must begin after separation from service
- Disability - You are considered disabled if you can furnish proof that you can’t do any substantial gainful activity because of your physical or mental condition
- Distributions due to death
- Unreimbursed medical expenses - up to the amount you paid for
unreimbursed medical expenses during the year minus 7.5% of your
adjusted gross income (AGI) for the year
- Made to alternate payee - Qualified retirement plan distributions
made to an alternate payee under a qualified domestic relations order
- Unemployed Individuals- IRA distributions made to certain unemployed individuals for health insurance premiums.
- Higher Education - IRA distributions made for qualified higher education expenses.
- First Time Homebuyer - IRA distributions made for the purchase of a first home, up to $10,000
- Qualified retirement plan distributions made due to an IRS levy
- Qualified distributions to reservists while serving on active duty for at least 180 days.
- Distributions incorrectly indicated as early distributions by code 1, J, or S in box 7 of Form 1099-R. Include on line 2 the amount you received when you were age 591/2 or older.
- Distributions from a section 457 plan, which aren’t from a rollover from a
qualified retirement plan.
- Distributions from a plan maintained by an employer if:
- You separated from service by March 1, 1986;
- As of March 1, 1986, your entire
interest was in pay status under a
written election that provides a specific
schedule for the distribution of your
entire interest; and
- The distribution is actually being
made under the written election
- Distributions that are dividends paid with respect to stock described in
- Distributions from annuity contracts to he extent that the distributions are allocable to the investment in the contract before August 14, 1982.
- Distributions that are phased retirement annuity payments made to
- Permissible withdrawals under section 414(w).
- Distributions that are qualified disaster distributions.
- Coronavirus-related distributions.
- Qualified birth or adoption distributions. Attach a statement that
provides the name, age, and TIN of the child or eligible adoptee.
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".