Distributions from a traditional IRA prior to age 59 1/2 are subject to a 10% penalty in addition to federal and state income taxes. Under the following circumstances, you may be able to avoid the penalty on early withdrawal:
- Qualified higher education expenses,
- Qualified first-home purchase (lifetime limit of $10,000),
- Certain major medical expenses,
- Certain long-term unemployment expenses, and
- A series of substantially equal periodic payments.
"You are considered disabled if 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 duation."
Please call a Retirement representative at 800-544-6666 for more information.