72(t) early withdrawals (SEPP)
No 10% penalty
Can You Write Off 72 Early Withdrawals?
Short answer: Substantially equal periodic payments let you tap an IRA before 59½ penalty-free, but you must keep them up for 5 years or until 59½, whichever is longer.
Withdrawals before 59½ are taxed as income plus a 10% penalty unless an exception applies; exceptions waive the penalty, not the income tax.
Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.
72(t) early withdrawals (SEPP)
No 10% penalty
Individuals / Personal Taxes
Substantially equal periodic payments let you tap an IRA before 59½ penalty-free, but you must keep them up for 5 years or until 59½, whichever is longer.
Business justification
Substantially equal periodic payments let you tap an IRA before 59½ penalty-free, but you must keep them up for 5 years or until 59½, whichever is longer. Withdrawals before 59½ are taxed as income plus a 10% penalty unless an exception applies; exceptions waive the penalty, not the income tax.
Category
- Personal Tax Deductions