The following table summarizes the penalies for withdrawing money from a retirement plan before reaching age 59 and a half, as well as the more common exceptions.  It is not meant to be an all inclusive list.    Penalty for early withdrawal (before age 59 and 1/2) Exceptions to the penalty  (meaning the penalty doesn't apply in theses cases) Traditional IRA 10% penalty (in addition to the regular tax on the distribution)  - death, disability, medical expenses over 7.5% AGI, college for self, spouse, child or grandchild, first time homebuyer ($10,000 limit), annuity payout over life expectancy   Roth IRA 10% on the earnings (never the principle contributed).  A Roth requires a five-year holding period before distibutions, even if over age 59 and a half.  Since Roth money has already been taxed, there is no penalty for anyone until total withdrawals exceed total contributions - dealth or disability, first time homebuyer ($10,000 limit) Simple IRA 10% penalty (in addition to the regular tax on the distribution)  UNLESS it's within the 2-year holding period, then it's a 25% penalty     - death, disability, medical expenses over 7.5% AGI,- college for self, spouse, child or grandchild,first time homebuyer ($10,000 limit), annuity payout over life expectancy   Simple  401-K 10% penalty (in addition to the regular tax on the distribution)  UNLESS it's within the 2-year holding period, then it's a 25% penalty - death, disability, severance from employment after age 55, financial hardship, medical, qualified reservist  401-K 10% penalty (in addition to the regular tax on the distribution)  - death, disability, severance from employment after age 55, financial hardship, medical expenses, qualified reservist Roth 401-K 10% on the earnings (never the principle contributed).  A Roth requires a five-year holding period before distibutions, even if over age 59 and a half.  Since Roth money has already been taxed, there is no penalty for anyone until total withdrawals exceed total contributions - death, disability, severance from employment after age 55, financial hardship, medical expenses, qualified reservist SEP 10% penalty (in addition to the regular tax on the distribution)        - dealth or disability   - first time homebuyer ($10,000 limit)