Reasons for an Early Withdrawal Using 72(t)

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72t Early Distribution Exceptions

A 72(t) early distribution will NOT be subject to the 10% additional early withdrawal tax in the following circumstances:

Age: after participant/IRA owner reaches age 59½

Automatic Enrollment: permissive withdrawals from a plan with auto enrollment features

Corrective Distributions: corrective distributions (and associated earnings) of excess contributions, excess aggregate contributions and excess deferrals, made timely.

Death: after death of the participant/IRA owner

Disability: total and permanent disability of the participant/IRA owner

Domestic Relations: to an alternate payee under a Qualified Domestic Relations Order

Education: qualified higher education expenses

Equal Payments: series of substantially equal payments

ESOP: dividend pass through from an ESOP

Homebuyers: qualified first-time homebuyers, up to $10,000

Levy: because of an IRS levy of the plan

Medical: amount of reimbursed medical expenses (>7.5% AGI; after 2012, 10% if under age 65), or health insurance premiums paid while unemployed.

Military: certain distributions to qualified military reservists called to active duty

Returned IRA Contributions: if withdrawn by extended due date of return, or earnings on these returned contributions

Rollovers: in-plan Roth rollovers or eligible distributions contributed to another retirement plan or IRA within 60 days (also see FAQs: Waivers of the 60-Day Rollover Requirement)

Separation from Service: the employee separates from service during or after the year the employee reaches age 55 (age 50 for public safety employees of a state, or political subdivision of a state, in a governmental defined benefit plan)