There are tax implications (generally a 10% penalty and possibly federal and state income taxes and other penalties) for early withdrawals from an IRA, but, sometimes, the IRS will waive a tax penalty for early withdrawals. We’ve listed some of the exceptions recognized by the IRS below. As always, please talk to a tax specialist before making any decisions.
Qualified Reservist Distributions (QRDs) - These are for military members who were called into active duty from the reserves for over 180 days.
Disability - The IRS defines disability as “total and permanent disability of the IRA owner.” To qualify for this exemption, your condition must prevent you from working.
Death - Please contact us if you are the beneficiary or trustee of a Qapital IRA. Legal documents may be required.
Education - IRA funds may sometimes be withdrawn without tax penalty for higher education expenses. Talk to a tax specialist about your options.
Medical - The IRS splits medical exemptions into two categories: unreimbursed medical expenses and medical insurance if you are unemployed.
This information is for informational purposes only and is subject to change. It should not be considered legal or tax advice. Qapital does not provide legal or tax advice. If you have questions regarding your personal circumstances, please consult a tax or legal professional.