{"id":20385,"date":"2017-06-14T12:00:00","date_gmt":"2017-06-14T12:00:00","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/"},"modified":"2021-07-29T14:50:05","modified_gmt":"2021-07-29T19:50:05","slug":"early-distribution-exceptions","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/irs\/tax-responsibilities\/early-distribution-exceptions\/","title":{"rendered":"What are the exceptions to the early withdrawal penalty?"},"content":{"rendered":"<p>Form 5329 exceptions to early withdrawal penalty codes are:<\/p>\n<ul>\n<li>01 &#8212; Distributions from a qualified retirement plan (not an IRA) after separation from employment and after reaching age 55<\/li>\n<li>02 &#8212; Distributions made as part of a series of substantially equal periodic payments &#8212; made at least annually. These distributions must be for:\n<ul>\n<li>Your life or life expectancy<\/li>\n<li>The joint lives or joint life expectancies of you and your designated beneficiary<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"margin-left: 40.0px;\">If the distributions are from an employer plan, payments must begin after separation from service.<\/p>\n<ul>\n<li>03 &#8212; Distributions due to total and permanent disability<\/li>\n<li>04 &#8212; Distributions due to death. This doesn&#8217;t apply to modified endowment contracts.<\/li>\n<li>05 &#8212; Qualified retirement plan distributions that:\n<ul>\n<li>Were used to pay deductible unreimbursed medical expenses<\/li>\n<li>Exceed 10% (7.5% if you or your spouse was age 65 or older) of your adjusted gross income (AGI)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"margin-left: 40.0px;\">You don&#8217;t have to itemize your deductions to claim the exception.<\/p>\n<ul>\n<li>06 &#8212; Qualified retirement plan (not an IRA) distribution under a qualified domestic relations order<\/li>\n<li>07 &#8212; IRA distributions made to individuals who were on unemployment compensation for 12 consecutive weeks to pay for health insurance premiums<\/li>\n<li>08 &#8212; IRA distributions made for higher-education expenses<\/li>\n<li>09 &#8212; IRA distributions made to buy your first home, up to $10,000<\/li>\n<li>10 &#8212; Distributions due to an IRS levy on the qualified retirement plan<\/li>\n<li>11 &#8212; Qualified distributions to reservists while serving on active duty for at least 180 days<\/li>\n<li>12 &#8212; Other &#8212; see Form 5329 instructions. Also, use this code if more than one exception applies.<\/li>\n<\/ul>\n<p>If you had economic losses as a result of certain federally declared disasters, you can exempt the 10% early distribution tax without filing Form 5329. To learn more, see Publication 590 for available disaster relief.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Form 5329 exceptions to early withdrawal penalty codes are: 01 &#8212; Distributions from a qualified retirement plan (not an IRA) after separation from employment and after reaching age 55 02 &#8212; Distributions made as part of a series of substantially equal periodic payments &#8212; made at least annually. These distributions must be for: Your life [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[25,53],"tags":[],"class_list":["post-20385","post","type-post","status-publish","format-standard","hentry","category-irs","category-tax-responsibilities"],"acf":[],"yoast_head":"<title>Early Distribution Exceptions | H&amp;R Block<\/title>\n<meta name=\"description\" content=\"Can you can an exemption for early distribution from a 401k? Knowing the answer can make a big difference. Get tax answers from H&amp;R Block.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/tax-responsibilities\/early-distribution-exceptions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What are the exceptions to the early withdrawal penalty?\" \/>\n<meta property=\"og:description\" content=\"Can you can an exemption for early distribution from a 401k? Knowing the answer can make a big difference. Get tax answers from H&amp;R Block.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.hrblock.com\/tax-center\/irs\/tax-responsibilities\/early-distribution-exceptions\/\" \/>\n<meta property=\"og:site_name\" content=\"H&amp;R Block\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/hrblock\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/hrblock\" \/>\n<meta property=\"article:published_time\" content=\"2017-06-14T12:00:00+00:00\" \/>\n<meta name=\"author\" content=\"H&amp;R Block\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@HRBlock\" \/>\n<meta name=\"twitter:site\" content=\"@hrblock\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"H&amp;R Block\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/irs\\\/tax-responsibilities\\\/early-distribution-exceptions\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/irs\\\/tax-responsibilities\\\/early-distribution-exceptions\\\/\"},\"author\":{\"name\":\"H&amp;R Block\",\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/#\\\/schema\\\/person\\\/0451551be86ad17708cdd08a71391fcf\"},\"headline\":\"What are the exceptions to the early withdrawal penalty?\",\"datePublished\":\"2017-06-14T12:00:00+00:00\",\"dateModified\":\"2021-07-29T19:50:05+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/irs\\\/tax-responsibilities\\\/early-distribution-exceptions\\\/\"},\"wordCount\":283,\"articleSection\":[\"IRS\",\"Tax responsibilities\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/irs\\\/tax-responsibilities\\\/early-distribution-exceptions\\\/\",\"url\":\"https:\\\/\\\/resource-center.hrblock.com\\\/irs\\\/tax-responsibilities\\\/early-distribution-exceptions\\\/\",\"name\":\"Early Distribution Exceptions | H&R Block\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/#website\"},\"datePublished\":\"2017-06-14T12:00:00+00:00\",\"dateModified\":\"2021-07-29T19:50:05+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/#\\\/schema\\\/person\\\/0451551be86ad17708cdd08a71391fcf\"},\"description\":\"Can you can an exemption for early distribution from a 401k? Knowing the answer can make a big difference. Get tax answers from H&R Block.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/irs\\\/tax-responsibilities\\\/early-distribution-exceptions\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/resource-center.hrblock.com\\\/irs\\\/tax-responsibilities\\\/early-distribution-exceptions\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/irs\\\/tax-responsibilities\\\/early-distribution-exceptions\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/resource-center.hrblock.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"What are the exceptions to the early withdrawal penalty?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/#website\",\"url\":\"https:\\\/\\\/resource-center.hrblock.com\\\/\",\"name\":\"H&amp;R Block\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/resource-center.hrblock.com\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/#\\\/schema\\\/person\\\/0451551be86ad17708cdd08a71391fcf\",\"name\":\"H&amp;R Block\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/wp-content\\\/uploads\\\/2017\\\/08\\\/BlockAuthor.jpg\",\"url\":\"https:\\\/\\\/resource-center.hrblock.com\\\/wp-content\\\/uploads\\\/2017\\\/08\\\/BlockAuthor.jpg\",\"contentUrl\":\"https:\\\/\\\/resource-center.hrblock.com\\\/wp-content\\\/uploads\\\/2017\\\/08\\\/BlockAuthor.jpg\",\"caption\":\"H&amp;R Block\"},\"sameAs\":[\"http:\\\/\\\/hrblock.com\",\"https:\\\/\\\/www.facebook.com\\\/hrblock\",\"https:\\\/\\\/x.com\\\/HRBlock\"]}]}<\/script>","yoast_head_json":{"title":"Early Distribution Exceptions | H&R Block","description":"Can you can an exemption for early distribution from a 401k? Knowing the answer can make a big difference. Get tax answers from H&R Block.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.hrblock.com\/tax-center\/irs\/tax-responsibilities\/early-distribution-exceptions\/","og_locale":"en_US","og_type":"article","og_title":"What are the exceptions to the early withdrawal penalty?","og_description":"Can you can an exemption for early distribution from a 401k? Knowing the answer can make a big difference. Get tax answers from H&R Block.","og_url":"https:\/\/www.hrblock.com\/tax-center\/irs\/tax-responsibilities\/early-distribution-exceptions\/","og_site_name":"H&amp;R Block","article_publisher":"https:\/\/www.facebook.com\/hrblock","article_author":"https:\/\/www.facebook.com\/hrblock","article_published_time":"2017-06-14T12:00:00+00:00","author":"H&amp;R Block","twitter_card":"summary_large_image","twitter_creator":"@HRBlock","twitter_site":"@hrblock","twitter_misc":{"Written by":"H&amp;R Block","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.hrblock.com\/tax-center\/irs\/tax-responsibilities\/early-distribution-exceptions\/#article","isPartOf":{"@id":"https:\/\/www.hrblock.com\/tax-center\/irs\/tax-responsibilities\/early-distribution-exceptions\/"},"author":{"name":"H&amp;R Block","@id":"https:\/\/www.hrblock.com\/tax-center\/#\/schema\/person\/0451551be86ad17708cdd08a71391fcf"},"headline":"What are the exceptions to the early withdrawal penalty?","datePublished":"2017-06-14T12:00:00+00:00","dateModified":"2021-07-29T19:50:05+00:00","mainEntityOfPage":{"@id":"https:\/\/www.hrblock.com\/tax-center\/irs\/tax-responsibilities\/early-distribution-exceptions\/"},"wordCount":283,"articleSection":["IRS","Tax responsibilities"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.hrblock.com\/tax-center\/irs\/tax-responsibilities\/early-distribution-exceptions\/","url":"https:\/\/www.hrblock.com\/tax-center\/irs\/tax-responsibilities\/early-distribution-exceptions\/","name":"Early Distribution Exceptions | H&R Block","isPartOf":{"@id":"https:\/\/www.hrblock.com\/tax-center\/#website"},"datePublished":"2017-06-14T12:00:00+00:00","dateModified":"2021-07-29T19:50:05+00:00","author":{"@id":"https:\/\/www.hrblock.com\/tax-center\/#\/schema\/person\/0451551be86ad17708cdd08a71391fcf"},"description":"Can you can an exemption for early distribution from a 401k? Knowing the answer can make a big difference. Get tax answers from H&R Block.","breadcrumb":{"@id":"https:\/\/www.hrblock.com\/tax-center\/irs\/tax-responsibilities\/early-distribution-exceptions\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.hrblock.com\/tax-center\/irs\/tax-responsibilities\/early-distribution-exceptions\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.hrblock.com\/tax-center\/irs\/tax-responsibilities\/early-distribution-exceptions\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.hrblock.com\/tax-center\/"},{"@type":"ListItem","position":2,"name":"What are the exceptions to the early withdrawal penalty?"}]},{"@type":"WebSite","@id":"https:\/\/www.hrblock.com\/tax-center\/#website","url":"https:\/\/www.hrblock.com\/tax-center\/","name":"H&amp;R Block","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.hrblock.com\/tax-center\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.hrblock.com\/tax-center\/#\/schema\/person\/0451551be86ad17708cdd08a71391fcf","name":"H&amp;R Block","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.hrblock.com\/tax-center\/wp-content\/uploads\/2017\/08\/BlockAuthor.jpg","url":"https:\/\/www.hrblock.com\/tax-center\/wp-content\/uploads\/2017\/08\/BlockAuthor.jpg","contentUrl":"https:\/\/www.hrblock.com\/tax-center\/wp-content\/uploads\/2017\/08\/BlockAuthor.jpg","caption":"H&amp;R Block"},"sameAs":["http:\/\/hrblock.com","https:\/\/www.facebook.com\/hrblock","https:\/\/x.com\/HRBlock"]}]}},"_links":{"self":[{"href":"https:\/\/www.hrblock.com\/tax-center\/wp-json\/wp\/v2\/posts\/20385","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hrblock.com\/tax-center\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hrblock.com\/tax-center\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hrblock.com\/tax-center\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hrblock.com\/tax-center\/wp-json\/wp\/v2\/comments?post=20385"}],"version-history":[{"count":0,"href":"https:\/\/www.hrblock.com\/tax-center\/wp-json\/wp\/v2\/posts\/20385\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.hrblock.com\/tax-center\/wp-json\/wp\/v2\/media?parent=20385"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hrblock.com\/tax-center\/wp-json\/wp\/v2\/categories?post=20385"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hrblock.com\/tax-center\/wp-json\/wp\/v2\/tags?post=20385"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}