Template Header

Early Withdrawal Exemptions

Early withdrawals are exempt from the 10% penalty in the following situations:

  • Death or permanent disability
  • To pay medical expenses that exceed 7.5% of your adjusted gross income (AGI)
  • To pay health insurance premiums for unemployed persons of their families
  • To pay qualified higher-education expenses for you, your spouse, or your children or grandchildren
    • Qualified higher-education expenses include: tuition, fees, books, supplies and equipment required for the enrollee
  • To buy, build, or rebuild a first home (up to a total of $10,000) that is the principal residence of you, your spouse, your children, grandchildren or ancestor

Note: You must have established your Roth IRA for five years or more to take advantage of any of the above exemptions.