When withdrawing funds from your IRA you may be able to avoid early withdrawal penalties (but not taxes) in several situations, including, but not limited to, the following:
- First-time home purchase (up to a $10,000 lifetime maximum)
- For qualified higher education expenses: To pay toward college expenses for the account holder, or for the account holder's spouse, children, and grandchildren.
- Unreimbursed medical expenses within certain limits or health insurance if you’re unemployed.
- The distribution is made in substantially equal periodic payments. (minimum 5 years or until the IRA owner reaches 59½).
- You become permanently disabled
Please consult your tax professional for a full list of situations and determine if this type of withdrawal is right for you.