The exceptions are as follows:
- The distribution is made on or after the date you reach age 59.5
- The distribution is made while you are disabled and you can furnish proof that you cannot do any substantial gainful activity because of your physical or mental condition. A physician must determine that your condition can be expected to result in death or to be of long, continued and indefinite duration.
- The distribution is part of a substantially equal periodic payment (SEPP).
- The distribution is made by your beneficiary after your death.
- The distribution is made as a result of an IRS levy.
- The distribution is used for a first-time home purchase for you or an eligible family member (subject to a lifetime limit of $10,000). This includes expenses to build or rebuild a first home.
- You have unreimbursed medical expenses that are not more than (a) the amount you paid for unreimbursed medical expenses during the year of the distribution, or (b) minus 7.5% of your adjusted gross income for the year of the distribution.
- You are paying medical insurance premiums for yourself, your spouse and your dependents after losing your job and:
- You received unemployment compensation paid under any federal or state law for 12 consecutive weeks because you lost your job.
- You receive the distributions during either the year you received the unemployment compensation or the following year.
- You receive the distributions no later than 60 days after you have been reemployed.
- The distributions are not more than your qualified higher education expenses.
- The distribution is attributed to amounts that were non-taxable when converted.
- The distribution is attributed to amounts that have been converted for at least five years.
To learn more, read Avoiding IRS Penalties On Your IRA Assets.
Question answered by Denise Appleby, CISP, CRC, CRPS, CRSP, APA
The ordering rules must be applied to determine whether the distribution is subject to income taxes and/or the early distribution ... Read Answer >>
RetirementMost Americans think that an IRA is locked up until they reach 59.5, and withdrawals before that date trigger taxes and a 10% penalty tax. This is not always true.
RetirementFind out what happens to your 401(k) after you leave your job. Learn about your five primary options, including cashing out and rolling over to a new plan.
Financial AdvisorMandatory minimum distributions from traditional IRAs and qualified plans cannot be avoided. But there are several ways to minimize their impact.
RetirementBe informed about benefits and deductions that may apply to you and avoid costly mistakes on your return.
Financial Advisor401(k)s, pensions and profit-sharing plans can be a source of cash, but there are consequences to this option.
Personal FinanceHere’s a checklist for some financial housekeeping that can be addressed now—before you’re up to your neck in gift wrap and holiday parties.
Financial AdvisorAge 70 marks the time that you will have to start thinking about RMDs for real, but it's better to start planning for them much sooner.
RetirementLearn the requirements for withdrawing funds tax and penalty free.
1) A distribution from a Roth IRA that occurs before the Roth ...
1. When trading volume is higher than that of the previous day ...
The amount an individual must withdraw from certain types of ...
A statistical function that describes all the possible values ...
A payment made in the form of securities or other property, rather ...
A one-time payment for the entire amount due, rather than breaking ...