If you withdraw money from a traditional IRA before age 59½, you'll generally owe income tax plus a 10% penalty on the amount. But there are exceptions, including if you withdraw the money to cover certain higher education costs or to buy a home (first-time homebuyer expenses up to $10,000). You can usually make penalty-free IRA withdrawals when you have or adopt a child ($5,000 limit per child), in the event of a financial emergency ($1,000 limit per year) and to help with disaster recovery costs ($22,000 limit). Those who become disabled and domestic violence victims ($10,000 limit), among others, also may qualify.
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