Which of the following is not an exception to the 10% early withdrawal penalty of a traditional IRA:
A)Paying the costs of higher education, including tuition, fees, books, and room and board for a dependent child
B)Withdrawing up to $30,000 of first-time home-buying expenses
C)Using the withdrawals for medical expenses in excess of 10 percent of their AGI, for persons younger than 59½ years old
D)Over 59½ years old

Question

Quizplus · Accepted Answer

The correct choice is B because the IRS allows a penalty-free withdrawal from an IRA for first-time home-buying expenses, but the limit is up to $10,000, not $30,000. Choices A, C, and D are indeed exceptions to the 10% early withdrawal penalty.

Which of the Following Is Not an Exception to the 10