Are there situations in which I can withdraw funds penalty-free?

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 holders' 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.

While we are a registered investment adviser and are familiar with the requirements for establishing accounts, we do not provide legal, accounting, or tax advice. If you don’t already have one, we strongly encourage you to contact a tax professional for a full list of situations and to determine if this type of withdrawal is right for you.