Can I avoid the 10% penalty on early IRA payments?
A. Yes, if one of the following applies. 1. Disability of the IRA holder. 2. Death of the IRA holder. 3. Annuity like payments for 5 years or until age 59 1/2, whichever comes later. 4. Medical expenses for deductible medical expenses in excess of 7.5% of adjusted gross income. 5. Financing a qualified home purchase up to $10,000. (lifetime) 6. Qualified College expenses. 7. Health premiums during unemployment. 8. Payments to an employee attaining age 55.