Disability and
high unreimbursed medical expenses are also applicable reasons allowing for early withdrawal of 401k funds without penalty.
Not exact matches
This includes
unreimbursed medical expenses, health insurance premiums during unemployment, the purchase of a first home,
higher education expenses, and others.
Otherwise, these withdrawals of earnings are subject to ordinary income tax and the 10 % federal income tax penalty (with certain exceptions including death, disability,
unreimbursed medical expenses in excess of 10 % of adjusted gross income,
higher - education expenses the purchase of a first home ($ 10,000 lifetime cap) substantially equal periodic payments, and qualified reservist distributions).
Otherwise, if your
unreimbursed medical expenses are
high, you could withdraw funds from your SEP - IRA to cover the excess of those expenses (above 10 % of your adjusted gross income).
Higher premiums, more risk, carriers pulling out of states,
unreimbursed medical expenses, the list simply goes on and on.