Early Withdrawal Penalty Details

The early withdrawal penalty tax is defined as the following: You will pay a 10% penalty on a premature withdrawal unless your distribution qualifies as an exception to the penalty. The penalty will not apply if the distribution is used for: A first time home purchase (lifetime maximum is $10,000). Postsecondary education expenses. Substantially equal periodic payments taken under IRS guidelines. Medical expenses exceeding 7.5% of your adjusted gross income. An IRS levy on the IRA. Health insurance premiums (after you have received at least 12 consecutive weeks of unemployment compensation). Disability. Death.


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