Financial situations often arise that require individuals to access their retirement savings prior to the appropriate age, and the result could be a substantial penalty charged by the Internal Revenue Service. The good news, however, is that there are stipulations in place that if met can allow the fee to be waived. Being aware of the following IRA early withdrawal penalty exemptions could save a person an incredible amount of money that would otherwise be wasted.

An individual that needs to access money from their retirement account to help avoid foreclosure of their primary residence will be able to avoid paying any penalties. A renter may also be able to withdrawal money without penalty if they are on the verge of eviction, but they will need documentation from their landlord.

Medical expenses can often be paid for with retirement monies without the account holder being charged any penalties or fees. Only certain medical bills will qualify, however, and elective procedures may not be covered. Insurance premiums don’t count as a qualified medical expense unless a person is losing their coverage and must purchase a higher cost plan.

An individual that needs to pay for education for themselves or qualified dependents may be able to access the money in their IRA. Secondary or post secondary educational expenses often are eligible for a penalty free withdrawal, but accessing money to pay for student loans is normally not allowed unless there are extenuating circumstances.

It is important to realize that the above exemptions will not relieve a person from any mandatory taxes, but they will allow the early withdrawal penalty that would normally have been charged to be waived. Any individual that is unsure of whether or not they will qualify for one of these exemptions should contact a tax professional for further guidance.