You can receive distributions (make withdrawals) from your IRA at any time. But if the distributions are made before you reach age 59 ½, you will have to pay a 10% additional tax on the distribution. This additional tax applies on the portion of the distribution that is included in gross income, and is reported on Form 5329.
But there are exceptions. The 10% tax on early distributions does not apply in the following situations:
You receive a distribution from your IRA to cover un-reimbursed medical expenses that are more than 7.5% of your adjusted gross income. The additional tax would not apply on the distribution, to the extent of the excess medical expenses.
You receive a distribution that is not more than the cost of your medical insurance, when you have lost your job.
You receive a distribution when you are disabled, before reaching the age of 59½.
You receive the assets of an IRA as the beneficiary when the owner dies.
You are receiving distributions in the form of an annuity, even if you are not yet 59 ½ years of age.
You used the distribution to pay qualified higher education expenses. In determining the portion of the distribution not subject to the additional tax, you would include higher education expenses paid with earnings from your work, personal savings, loans, gifts, or an inheritance, and you would exclude expenses paid with scholarships, grants, educational assistance, and tax-free distributions from a Coverdell savings account.
The IRA distributions are used to buy, build, or re-build a first home. If neither you nor your spouse had a present interest in a home for 2 years prior to the acquisition date of the home you are buying, building, or re-building with the IRA distribution, you are considered first-time homebuyers, and each of you can receive distributions of up to $10,000 without having to pay the additional tax.