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Application of premature distribution tax to qualified plan

Does a 10% premature distribution tax apply to any distribution from a qualified plan?
Yes. In general, an additional income tax of 10% applies to a taxable distribution from a qualified plan unless one of several exceptions applies:
  • Post-59½ distributions;
    • substantially equal payment distributions;
  • Post-death distributions;
    • disability distributions;
  • Medical expense and premium distributions;
    • alternative payee distributions;
  • ESOP dividend distributions;
    • qualified higher educational expense distributions;

    • First time home purchase distributions; and,
  • Distribution from specialized IRAs.
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