When can the 10% early withdrawal penalty for IRAs be avoided?

Money can be withdrawn from an IRA at any time for any reason, but if it is withdrawn before the owner reaches 59 ½ a 10% penalty will generally be imposed. However, there are certain circumstances where the 10% penalty does not apply. The most common exceptions are: (1) withdrawals for medical expenses greater than 10% of your adjusted gross income; (2) Withdrawals after death made to the estate of the deceased; (3) withdrawals after a persona is declared mentally or physically disabled; (4) withdrawals after a military reservist is called to active duty; (5) withdrawals for first-time home purchases ($10,000 lifetime maximum); (6) withdrawals for health insurance during periods of unemployment; and (7) withdrawals for qualified higher education expenses. Not all of these apply to other types of tax-deferred accounts.