What are some exceptions to the 10% additional tax on early distributions?
The IRS provides exceptions to the 10% additional tax for certain early IRA distributions. Examples may include qualified higher education expenses, certain first-time homebuyer expenses, qualifying medical expenses, disability, birth or adoption, and other circumstances defined by the IRS.
Income taxes may still apply depending on the account type and distribution. Different rules may also apply to SIMPLE IRAs and other account types. Consult a qualified tax professional or current IRS guidance to determine whether an exception applies.
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