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Early Withdrawals from IRAs? Possible, but usually ill advised
There are some limited exceptions that allow one to withdraw money from a traditional IRA or the earnings from a Roth IRA (contributions can be taken out at any time) without paying a 10% penalty, though income tax ism still due. Exceptions include using the funds to pay for college tuition and related expenses, up to $10,000 toward a first-time home purchase, medical expenses that exceed 10% of your adjusted gross income, health insurance expenses following 12 consecutive weeks of unemployment, and living expenses if you become disabled. But, as Kailey Fralick writes, doing this will reduce your nest egg and the potential compounding effects from withdrawing from your investments. Read more here.