Exceptions to the 10% Early Withdrawal Penalty for IRA Distributions

Taking money from your IRA before age 59½? Normally, that means a 10% penalty on top of income tax—but there are exceptions.

In this article, we break down the most common situations where the IRS waives the early withdrawal penalty on IRA distributions. From first-time home purchases and higher education to medical expenses and unemployment, we walk through what qualifies and what to watch out for.