Taxable distributions from Traditional and Roth IRAs before age 59½ may be subject to an IRS 10% penalty tax. The exceptions to the 10% penalty before age 59½ are: death, disability, eligible medical expenses, certain unemployed individuals' health insurance premiums, qualified first home buyer (lifetime maximum of $10,000), qualified higher education expenses, substantially equal periodic payments (SEPP), Roth conversions, qualified reservist distribution or IRS levy.