Exceptions to the rule

Q: Can I tap my retirement accounts early?

A: You can take a withdrawal from your retirement account whenever you want, but you can get hit with a 10% early withdrawal penalty from the IRS unless you qualify for an exception.

There are different exceptions that apply to qualified plans (such as 401(k)s) and IRAs, so here’s a quick rundown.

If your retirement savings are in a 401(k), 457, 403( b), or other employer-sponsored plan, you can withdraw from the plan after age 55 if you no longer are working for the employer who sponsored the plan.

With an IRA, there are a few more exceptions. For example, you can withdraw up to $10,000 toward a first-time home purchase without triggering the penalty or any amount to pay for qualified higher education expenses. And with a Roth IRA, you’re free to withdraw your original contributions ( but not any investment profits) at any time and for any reason.

With any retirement account, you can withdraw money to cover medical expenses in excess of 10% of your adjusted gross income or in the event you become disabled. Or you can start withdrawing from your retirement savings early if you agree to take a series of “substantially equal” payments.