Research shows that there are 10 things that exempt you from early withdrawals of IRAs

First-time home purchase

You can withdraw up to $10,000 (lifetime limit) for qualified home acquisition costs without penalty.

Birth or adoption

You can withdraw up to $5,000 for expenses related to the birth or adoption of a child.

Emergency expenses

Starting January 1, 2024, you can withdraw up to $1,000 annually for emergency personal expenses without penalty.

 

 

Disaster recovery

Withdrawals for qualified disaster recovery expenses are exempt from the penalty, up to an aggregate limit of $22,000.

 

 

Disability

If you are disabled and cannot engage in substantial gainful activity, you can withdraw funds without penalty.

 

 

Long-term care

Beginning December 29, 2025, you can take penalty-free withdrawals for qualified long-term care expenses.

 

 

Terminal illness

Withdrawals due to terminal illness are exempt from the penalty.

 

 

Post-death withdrawals

Amounts withdrawn after the IRA owner’s death are not subject to the penalty.

 

 

Military reservists

Active-duty military reservists called to duty for at least 180 days can withdraw funds without penalty.

 

 

Health insurance premiums during unemployment

If you receive unemployment compensation for 12 consecutive weeks, you can withdraw funds to pay for health insurance premiums without penalty.

 

 

Domestic abuse victims

Starting January 1, 2024, you can take penalty-free withdrawals of up to $10,000 if you are a victim of domestic abuse.

 

 

IRS levies

Withdrawals to pay IRS levies on the IRA account are not subject to the penalty.

 

 

It’s important to note that SIMPLE IRAs incur a 25 percent penalty for early withdrawals within the first two years of participation. Additionally, Roth IRAs have different rules, allowing penalty-free access to contributions but potentially taxing and penalizing withdrawals of earnings.