Updated July 28, 2026. Quick answer: Several exceptions exist beyond 72(t) and the rule of 55 — disability, certain medical expenses, higher education for IRAs, first-home purchase, birth or adoption, qualified disasters, terminal illness and others. Most carry no lock-in at all.
Check these before committing to a schedule
A 72(t) commits you for years. A narrower exception that already fits your situation costs nothing and locks in nothing. It is worth ruling them out first.
| Exception | Note |
|---|---|
| Disability | Statutory definition, not a colloquial one |
| Certain unreimbursed medical expenses | Threshold-based |
| Higher education | IRAs only — not 401(k)s |
| First home | IRAs, lifetime dollar cap |
| Birth or adoption | Per child, repayable |
| Terminal illness, qualified disasters, and others | Added or expanded by SECURE 2.0 |
Several of these were added or modified by SECURE 2.0 and have specific dollar caps, thresholds and documentation requirements that this page does not restate. Confirm the current terms of any exception you intend to rely on — they have moved recently and some are repayable, which changes the analysis.
An exception avoids the penalty, not the tax
Every one of these removes the 10% additional tax. None makes the distribution tax-free. Ordinary income tax still applies on a traditional account.
Sources
IRC §72(t) (10% additional tax and its exceptions); IRC §72(t)(2)(A)(iv) (substantially equal periodic payments); IRC §72(t)(2)(A)(v) (separation from service at 55); Rev. Rul. 2002-62; Notice 2022-6. Cross-checked July 2026 against professional analyses. Interest rates published for these calculations change monthly and are described structurally here rather than quoted.
This states what the cited authority says. It is not tax advice, and a SEPP schedule is unusually unforgiving of small errors.