what qualifies as an exceptions for early withdrawal penalty
An early withdrawal is an IRA withdrawal taken before you reach age 59 Â½, which is subject to a 10% penalty tax in addition to ordinary income taxes. Below are eight situations which may qualify you for an exception to the 10% penalty tax on an IRA early withdrawal.There are no exceptions to paying ordinary income tax on the amount withdrawn. 1. If you inherit an IRA from a non-spouse, even if the IRA owner was under age 59 1/2, you will not have to pay the penalty tax on amounts withdrawn. 2  You will still have to include any IRA withdrawal in your adjusted gross income.