EXCEPTIONS TO 10% EARLY WITHDRAWAL PENALTY FOR
01.Core Concepts
DISTRIBUTION PRIOR TO 59½ (QUALIFIED PLANS) - 2025 • Death • Disability • Substantially equal periodic payments (IRC Sec. 72(t)) • Separation from service after the participant attains age 55 • Dividends paid from an ESOP • To pay a federal tax levy • Medical expenses in excess of 7.5% of the participants AGI • Qualified domestic relations order • Qualified military reservist called to active duty • Qualified public safety employees, government corrections officers, and firefighters who separates service after the earlier of age 50 or 25 years of service under the plan • Qualified birth or adoption distributions • Qualifying federally declared disasters • Terminal illness • Victim of domestic abuse • Emergency expenses (up to $1,000 per year) • Pension-linked emergency savings account distributions