The only way of finding the limits of the possible is by going beyond them into the impossible - Arthur C. Clarke
In most situations, you must wait until the age of 59 and a half to get a distribution from a Roth IRA without having to pay Roth IRA early withdrawal penalties of 10% of the amount withdrawn. In addition to the 10% penalty, there will be taxes imposed on your Roth IRA earnings if you choose to make early Roth IRA withdrawals. The IRS calls this a “non-qualified distribution” and the amount of tax imposed depends upon your tax bracket.
It is possible to get a distribution from your Roth IRA before age 59 and a half without penalty (a “qualified distribution”) in the following situations:
1. The Roth IRA owner dies.
2. The Roth IRA owner becomes disabled (very strict rules apply to what is considered “disabled”. See IRS Code Section 72(m)(7) and IRS Publication 590).
3. The distribution is used to pay taxes because of an IRS issued levy placed against the IRA.
4. The distribution is used to pay for the qualified expenses of higher education of the Roth IRA owner and/or eligible family members. This can include both college and secondary school.
5. The distribution is used to pay for a first time home purchase. This has a limit of $10,000 over the lifetime of the owner.
6. The distributions are a series of equal, periodic payments over the course of the owner’s lifetime.
7. The distribution is used to cover medical expenses that are not reimbursed and exceed 7 and a half percent of the owner’s income.
8. The distribution is used to pay medical insurance premiums after the owner has been unemployed for more than 12 weeks.
Of course, these exceptions have very strict guidelines, so be sure to do your research very cautiously before you decide that one applies to you. I would recommend seeing a tax professional or financial advisor before making any early withdrawals from your Roth IRA.
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