EARLY DISTRIBUTION PENALTY EXCEPTIONS (1 of 2)
01.Core Concepts
Both Qualified Plans & IRAs • Death • Attainment of age 59½ • Disability • Substantially equal periodic payments (Section 72(t)) • Medical expenses that exceeds 7.5% of AGI • Tax levy • Military reservist on active duty • Qualified distribution up to $5,000 for birth or adoption • Terminal illness (death expected within 84 months) • Qualified disaster recovery distributions up to $22,000 related to a presidentially declared disaster • Domestic abuse victims (up to the lesser of $10,500 (in 2026) or 50% of vested balance) • Emergency personal expenses (up to $1,000)