Exceptions. The 10% tax will not apply if distributions before age 59 ½ are made in any of the following circumstances:
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Made to a beneficiary (or to the estate of the participant) on or after the death of the participant,
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Made because the participant has a qualifying disability,
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Made as part of a series of substantially equal periodic payments beginning after separation from service and made at least annually for the life or life expectancy of the participant or the joint lives or life expectancies of the participant and his or her designated beneficiary. (The payments under this exception, except in the case of death or disability, must continue for at least 5 years or until the employee reaches age 59½, whichever is the longer period.),
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Made to a participant after separation from service if the separation occurred during or after the calendar year in which the participant reached age 55,
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Made to an alternate payee under a qualified domestic relations order (QDRO),
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Made to a participant for medical care up to the amount allowable as a medical expense deduction (determined without regard to whether the participant itemizes deductions),
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Timely made to reduce excess contributions,
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Timely made to reduce excess employee or matching employer contributions,
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Timely made to reduce excess elective deferrals, or
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Made because of an IRS levy on the plan.
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Made on account of certain disasters for which IRS relief has been granted.
