• The Saturna Advantage
• Retirement Calculators
• Individual Retirement Accounts
• Traditional IRA
• Roth IRA
• Converting To A Roth IRA
• 401(k) Plans
• Account Login
• General Guidelines
• Plan Services
• Fee Schedule
• Setting Up Your 401(k)
• Employer Plans
• SEP IRAs
• SIMPLE IRAs
• Rollovers & Transfers
• Withdrawal Exemptions
• Prohibited Transactions

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.