IRA Early Withdrawal Penalty Exceptions Guide for Age 59½ Rule (2026)
Understand IRA early withdrawal penalty exceptions: first-time home purchase, education expenses, medical costs, and 72(t) distributions for penalty-free access.
Summary
Early IRA withdrawals face 10% penalty but exceptions exist. This guide explains penalty-free withdrawal categories and qualification requirements.
Key Steps
- 1First-time home purchase: up to $10,000 penalty-free for qualified purchase.
- 2Education expenses: penalty-free for tuition, fees, books at eligible institutions.
- 3Medical costs: penalty-free if >7.5% AGI or for disabled individuals.
- 472(t) distributions: systematic withdrawals based on life expectancy avoid penalty.
- 5Track exception documentation: receipts, proof of eligibility for audit defense.