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Early Distributions — Exceptions: IRA Withdrawals (2025 IRS Guide)

This guide covers “Early Distributions — Exceptions” within ira withdrawals. The following material presents the IRS treatment of this topic, including the qualifications, exceptions, and examples in the source section. Read the rules alongside the facts of your own situation before deciding what to report, deduct, or document.

Adapted from Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs), published by the Internal Revenue Service. This guide retains the source edition’s years, amounts, deadlines, and examples. It is guidance for that edition, not a statement that the same figures apply to every tax year.

Context for these rules

You must include early distributions of taxable amounts from your traditional IRA in your gross income. Early distributions are also subject to a 10% additional tax, as discussed later.

Early Distributions — Exceptions

There are several exceptions to the age 59½ rule. Even if you receive a distribution before you are age 59½, you may not have to pay the 10% additional tax if you are in one of the following situations.

You have unreimbursed medical expenses that are more than 7.5% of your AGI.
The distribution is for the cost of your medical insurance due to a period of unemployment.
You are totally and permanently disabled.
You have been certified as having a terminal illness.
You are the beneficiary of a deceased IRA owner.
You are receiving distributions in the form of a series of substantially equal periodic payments.
The distribution is for your qualified higher education expenses.
You use the distributions to buy, build, or rebuild a first home.
The distribution is due to an IRS levy of the IRA.
The distribution is a qualified reservist distribution.
The distribution is a qualified birth or adoption distribution.
The distribution is a qualified disaster recovery distribution.
The distribution is a corrective distribution.
The distribution is to a domestic abuse victim.
The distribution is for certain emergency personal expenses.

Most of these exceptions are explained below.

Note:

Distributions that are timely and properly rolled over, as discussed in chapter 1 of Pub. 590-A, aren't subject to either regular income tax or the 10% additional tax. Certain withdrawals of excess contributions after the due date of your return are also tax free and therefore not subject to the 10% additional tax. (See Excess Contributions Withdrawn After Due Date of Return in chapter 1 of Pub. 590-A.) This also applies to transfers incident to divorce, as discussed under Can You Move Retirement Plan Assets? in chapter 1 of Pub. 590-A.

Receivership distributions.

Early distributions (with or without your consent) from savings institutions placed in receivership are subject to this tax unless one of the above exceptions applies. This is true even if the distribution is from a receiver that is a state agency.

Unreimbursed medical expenses.

Even if you are under age 59½, there are certain distribution amounts on which you don’t have to pay the 10% additional tax.

If you have unreimbursed medical expenses (that would qualify for a medical deduction) in excess of 7.5% of your adjusted gross income, defined next, you don’t have to pay the 10% additional tax on distributions from your IRA up to the amount by which those qualifying medical expenses exceed 7.5% of your adjusted gross income.

Caution:

You can only take into account unreimbursed medical expenses that you would be able to include in figuring a deduction for medical expenses on Schedule A (Form 1040). You don't have to itemize your deductions to take advantage of this exception to the 10% additional tax.

Adjusted gross income (AGI).

This is the amount on Form 1040, 1040-SR, or 1040-NR, line 11a.

Medical insurance.

Even if you are under age 59½, you may not have to pay the 10% additional tax on distributions during the year that aren't more than the amount you paid during the year for medical insurance for yourself, your spouse, and your dependents. You won't have to pay the tax on these amounts if all of the following conditions apply.

You lost your job.
You received unemployment compensation paid under any federal or state law for 12 consecutive weeks because you lost your job.
You receive the distributions during either the year you received the unemployment compensation or the following year.
You receive the distributions no later than 60 days after you have been reemployed.

Disabled.

If you become disabled before you reach age 59½, any distributions from your traditional IRA because of your disability aren't subject to the 10% additional tax.

You are considered disabled if you can furnish proof that you can't do any substantial gainful activity because of your physical or mental condition. A physician must determine that your condition can be expected to result in death or to be of long, continued, and indefinite duration.

Beneficiary.

If you die before reaching age 59½, the assets in your traditional IRA can be distributed to your beneficiary or to your estate without either having to pay the 10% additional tax.

However, if you inherit a traditional IRA from your deceased spouse and elect to treat it as your own (as discussed under What if You Inherit an IRA, earlier), any distribution you later receive before you reach age 59½ may be subject to the 10% additional tax.

Terminally ill individual distributions.

You may be able to take a distribution from an IRA before reaching age 59½ and not have to pay the 10% additional tax on early distributions if you receive the distribution on or after the date you have received a certification by a physician that you are terminally ill.

Terminally ill.

You are considered terminally ill if you are certified by a physician as having an illness or physical condition which can reasonably be expected to result in death in 84 months or less after the date of the certification.

Certification of terminal illness.

A certification of terminal illness must include the following:

A statement that the individual’s illness or physical condition can be reasonably expected to result in death in 84 months or less after the date of certification.
A narrative description of the evidence that was used to support the statement of illness or physical condition.
It must include the name and contact information of the physician making the statement.
The statement must include the date the physician examined the individual or reviewed the evidence provided by the individual, and the date that the physician signed the certification.
The statement must include the signature of the physician making the statement, and an attestation from the physician that, by signing the form, the physician confirms that the physician composed the narrative description based on the physician’s examination of the individual or the physician’s review of the evidence provided by the individual.

However, it is not sufficient evidence for an IRA owner who is a physician to certify the physician’s own terminal illness.

Certain corrective distributions not subject to 10% early distribution tax.

Beginning with distributions made on December 29, 2022, and after, the 10% additional tax on early distributions will not apply to a corrective IRA distribution, which consists of an excess contribution (a contribution greater than the IRA contribution limit) and any earnings allocable to the excess contribution, as long as the corrective distribution is made on or before the due date (including extensions) of the income tax return.

Substantially equal periodic payments.

You can receive distributions from your traditional IRA before age 59½ if they are part of a series of substantially equal payments over your life (or your life expectancy), or over the lives (or the joint life expectancies) of you and your beneficiary, without having to pay the 10% additional tax.

The IRS has provided three general methods of computing the annual distribution amounts for meeting the requirements for a series of substantially equal periodic payments: Notice 2022-6 explains the three methods and identifies tables to be used for 2023 and after. (See Notice 2022-6 at IRS.gov/irb/2022-05_IRB#NOT-2022-06).

The three methods are generally referred to as the required minimum distribution method (RMD method), the fixed amortization method, and the fixed annuitization method. The latter two methods may require professional assistance.

Caution:

The RMD method, when used for this purpose, results in the exact amount required to be distributed each year, not the minimum amount.

Tip:

Distributions received as periodic payments on or after December 29, 2022, will not fail to be treated as substantially equal merely because they are received as an annuity.

Note:

For a series of substantially equal periodic payments established in 2022, you may apply the guidance either in Notice 2022-6 at IRS.gov/irb/2022-05_IRB#NOT-2022-06, or in Revenue Ruling 2002-62 which is on page 710 of Internal Revenue Bulletin 2002-42 at https://www.irs.gov/pub/irs-irbs/irb02-42.pdf.

Recapture tax for changes in distribution method under equal payment exception.

You may have to pay a recapture tax if you modify (for reasons other than your death or disability) the annual amount distributed to be different from the annual amount determined under the distribution method that you initially established under the substantially equal periodic payment exception, and if the modification occurs before the date limitation explained in Modification date below.

The recapture tax is imposed in the tax year in which the modification occurs. The amount of tax is the amount of the 10% additional tax that would have been imposed in prior years had the exception not applied in those prior years, plus interest for the deferral periods.

Modification date.

The recapture tax applies if you modify the series of payments (other than because of death or disability) before the later of these two dates:

The 5th anniversary of the date of the first distribution of the series; or
The date you reach age 59½.

However, the following two situations are not treated as a modification of the series for purposes of the recapture tax: (a) if your account is completely depleted of all assets; or (b) if you make a one-time change to the RMD method from one of the other methods.

In the event of a modification that triggers the recapture tax, the tax does not apply to any amounts distributed after you reach age 59½.

Report the recapture tax (including the interest on the deferral periods) on line 4 of Form 5329. Attach an explanation to the form. Don't write the explanation next to the line or enter any amount for the recapture on line 1 or 3 of the form.

One-time switch.

If you are receiving a series of substantially equal periodic payments, you can make a one-time switch to the required minimum distribution method at any time without incurring the recapture tax. Once a change is made, you must follow the required minimum distribution method in all subsequent years.

Transfers and rollovers of assets.

Certain transfers and rollovers of assets from qualified plans or annuity contracts using the substantially equal periodic payment method are not considered a modification of the distribution method if certain requirements are met.

Transfers of assets of certain qualified plans.

For this purpose, a qualified retirement plan is:

A qualified employee plan (including a qualified cash or deferred arrangement (CODA) under Internal Revenue Code section 401(k)),
A qualified employee annuity plan, or
A tax-sheltered annuity plan (403(b) plan).

Transferor and transferee plans.

A qualified plan distributing its assets using the substantially equal periodic payment method can roll over or transfer some or all its assets to another qualified plan. In this situation the plan transferring the assets is the transferor and the plan receiving the assets is the transferee.

When a transfer or rollover of assets is not considered a modification of the substantially equal payment method.

If a qualified plan is distributing its assets using the substantially equal periodic payment method transfers or rolls over some or all its assets to another qualified plan, the distributions from the transferee plan (or a combination of the transferee and transferor plan (if all its assets were not transferred)) is not considered a modification of the substantially equal periodic payment method if the following requirements are met:

The transferor plan distributed or is distributing its assets using the substantially equal periodic payment method,
Distributions from the transferee and transferor plan (if applicable) would, in combination, continue to satisfy the requirements of the substantially equal periodic payment method, and
The distributions from a combination of the transferee and transferor plan (if applicable) continue to satisfy the requirements of the substantially equal periodic payment method as if they had been made only from the transferor plan.

Higher education expenses.

Even if you are under age 59½, if you paid expenses for higher education during the year, part (or all) of any distribution may not be subject to the 10% additional tax. The part not subject to the tax is generally the amount that isn't more than the qualified higher education expenses (defined next) for the year for education furnished at an eligible educational institution (defined below). The education must be for you, your spouse, or the children or grandchildren of you or your spouse.

When determining the amount of the distribution that isn't subject to the 10% additional tax, include qualified higher education expenses paid with any of the following funds.

Payment for services, such as wages.
A loan.
A gift.
An inheritance given to either the student or the individual making the withdrawal.
A withdrawal from personal savings (including savings from a qualified tuition program).

Don't include expenses paid with any of the following funds.

Tax-free distributions from a Coverdell education savings account.
Tax-free part of scholarships and fellowships.
Pell grants.
Employer-provided educational assistance.
Veterans' educational assistance.
Any other tax-free payment (other than a gift or inheritance) received as educational assistance.

Qualified higher education expenses.

Qualified education expenses, eligible for the exception to the 10% additional tax for early distributions from IRAs, are tuition, fees, books, supplies, and equipment (including computer equipment and related services) required for the enrollment or attendance at an eligible educational institution, including those expenses incurred in connection with a recognized postsecondary credential program.

They also include expenses for special needs services incurred by or for special needs students in connection with their enrollment or attendance at an eligible educational institution.

Additional qualified education expenses in connection with elementary and secondary tuition.

Qualified higher education expenses include the following expenses in connection with the enrollment or attendance at an elementary or secondary public, private, or religious school:

Tuition.
Curriculum and curricular materials.
Books or other instructional materials.
Online education materials.
Tuition for tutoring or educational classes outside of the home, including at a tutoring facility, but only if the tutor or instructor meets certain requirements. (See Requirements for tutors later.)
Fees for a nationally standardized norm-referenced achievement test, an advanced placement examination, or any examinations related to college or university admission.
Fees for dual enrollment in an institution of higher education.
Educational therapies for students with disabilities provided by a licensed or accredited practitioner or provider, including occupational, behavioral, physical, and speech-language therapies.

Requirements for tutors.

Tutors or teachers tutoring or providing educational classes outside of the home must not be related to the student and meet the following requirements.

They must be licensed as a teacher in any state, or
They must have taught at an eligible educational institution, or
They must be a subject matter expert in the relevant subject.

Eligible educational institution.

This is any college, university, vocational school, or other postsecondary educational institution eligible to participate in the student aid programs administered by the U.S. Department of Education. It includes virtually all accredited, public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. The educational institution should be able to tell you if it is an eligible educational institution.

For more information, see chapter 8 of Pub. 970.

First home.

Even if you are under age 59½, you don't have to pay the 10% additional tax on up to $10,000 of distributions you receive to buy, build, or rebuild a first home. To qualify for treatment as a first-time homebuyer distribution, the distribution must meet all the following requirements.

It must be used to pay qualified acquisition costs (defined next) before the close of the 120th day after the day you received it.
It must be used to pay qualified acquisition costs for the main home of a first-time homebuyer (defined below) who is any of the following.
1. Yourself.
2. Your spouse.
3. Your or your spouse's child.
4. Your or your spouse's grandchild.
5. Your or your spouse's parent or other ancestor.
When added to all your prior qualified first-time homebuyer distributions, if any, total qualifying distributions can't be more than $10,000.

Tip:

If both you and your spouse are first-time homebuyers (defined later), each of you can receive distributions up to $10,000 for a first home without having to pay the 10% additional tax.

Qualified acquisition costs.

Qualified acquisition costs include the following items.

Costs of buying, building, or rebuilding a home.
Any usual or reasonable settlement, financing, or other closing costs.

First-time homebuyer.

Generally, you are a first-time homebuyer if you had no present interest in a main home during the 2-year period ending on the date of acquisition of the home which the distribution is being used to buy, build, or rebuild. If you are married, your spouse must also meet this no-ownership requirement.

Date of acquisition.

The date of acquisition is the date that:

You enter into a binding contract to buy the main home for which the distribution is being used, or
The building or rebuilding of the main home for which the distribution is being used begins.

Tip:

If you received a distribution to buy, build, or rebuild a first home and the purchase or construction was canceled or delayed, you could generally contribute the amount of the distribution to an IRA within 120 days of the distribution and not pay income tax or the 10% additional tax on early distributions. This contribution is treated as a rollover contribution to the IRA.

Qualified reservist distributions.

A qualified reservist distribution isn't subject to the 10% additional tax on early distributions.

Definition.

A distribution you receive is a qualified reservist distribution if the following requirements are met.

You were ordered or called to active duty after September 11, 2001.
You were ordered or called to active duty for a period of more than 179 days or for an indefinite period because you are a member of a reserve component.
The distribution is from an IRA or from amounts attributable to elective deferrals under a section 401(k) or 403(b) plan or a similar arrangement.
The distribution was made no earlier than the date of the order or call to active duty and no later than the close of the active duty period.

Reserve component.

The term “reserve component” means the:

Army National Guard of the United States,
Army Reserve,
Navy Reserve,
Marine Corps Reserve,
Air National Guard of the United States,
Air Force Reserve,
Coast Guard Reserve, or
Reserve Corps of the Public Health Service.

Qualified birth or adoption distribution.

A qualified birth or adoption distribution is any distribution from an applicable eligible retirement plan if made during the 1-year period beginning on the date on which your child was born or the date on which the legal adoption of your child was finalized.

A qualified birth or adoption distribution must not exceed $5,000 per taxpayer. In addition, an eligible adoptee is any individual (other than the child of the taxpayer’s spouse) who has not reached age 18 or is physically or mentally incapable of self-support.

Amount may be repaid.

If you receive a qualified birth or adoption distribution, you can make one or more contributions to an eligible retirement plan during the 3-year period beginning on the day after the date the distribution was received. You make this repayment if you are a beneficiary of that plan, the plan accepts rollover contributions, and the total of those contributions does not exceed the amount of the qualified birth or adoption distribution. Any contribution made to the eligible retirement plan as a repayment of a qualified birth or adoption distribution may be eligible for tax-free rollover treatment.

In the case of a qualified birth or adoption distribution made on or before December 29, 2022, you can make one or more contributions after the distribution but before January 1, 2026.

Domestic abuse victim distributions.

An eligible distribution to a domestic abuse victim is a distribution to a domestic abuse victim from an applicable eligible retirement plan and made to that individual during the 1-year period beginning on any date on which the individual is a victim of domestic abuse by a spouse or domestic partner. See Notice 2024-55, available at IRS.gov/irb/2024-28_IRB#NOT-2024-55, for more information.

Distribution limits.

An eligible distribution to a domestic abuse victim must not exceed the lesser of $10,300 for 2025 or 50% of the present value of the IRA.

Emergency personal expense distributions.

An emergency personal expense distribution is a distribution from an applicable eligible retirement plan for the purposes of meeting the unforeseeable or immediate financial needs relating to necessary personal or family emergency expenses. See Notice 2024-55, available at IRS.gov/irb/2024-28_IRB#NOT-2024-55, for more information.

Distribution limits.

You are limited to taking one emergency personal expense distribution per calendar year and the amount that may be treated as an emergency personal expense distribution must not exceed the lesser of $1,000 or your total interest in the IRA minus $1,000. You are also limited in taking emergency personal expense distributions in subsequent years as you may not take this type of distribution in the following 3 calendar years unless:

The previous distribution is repaid, or
The total amounts contributed to the IRA after the previous distribution is at least equal to the amount of the distribution which has not been repaid.

Repayment of certain early distributions.

Contributions made to the eligible retirement plan as a repayment of one of the early distributions listed below may be eligible for tax-free rollover treatment:

Emergency personal expense distributions,
Domestic abuse victim distributions, and
Terminally ill individual distributions.

You can make one or more contributions to an eligible retirement plan, including an IRA, during the 3-year period beginning on the day after the date the distribution was received.

You must be a beneficiary of the plan and the total amount you repay can't exceed the amount of the emergency personal expense, domestic abuse victim, or terminally ill individual distributions you received.

Using the guidance

Keep the documents that establish the dates, amounts, and circumstances described above. References to other chapters, forms, worksheets, or earlier and later sections refer to the linked IRS publication. Check the full publication and its updates before relying on a rule for a different tax year or a situation not addressed here.

Sources and further reading

Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs): Traditional IRAs — What Acts Result in Penalties or Additional Taxes? — Early Distributions — Exceptions — Internal Revenue Service; 2025 edition.

The cited U.S. government text is in the public domain. Source accessed October 28, 2026. Fynoptic has organized this material for educational use and is independent of, and not endorsed by, the IRS.

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