- Distributions to beneficiaries after an owner’s death;
- Distributions to IRA owners who are considered disabled, though they must be “unable to engage in any substantial gainful activity” due to a “medically determinable physical or mental impairment” expected to last indefinitely or result in death, as defined in IRC Section 72(m)(7);
- Distributions made on account of an IRS levy;
- Distributions for medical expenses in excess of 10% of the IRA owner’s adjusted gross income;
- Distributions used to pay qualified higher education expenses of the IRA owner or other qualified individuals; and
- Distributions up to $10,000, which are used toward the first-time purchase of a home.
- Continue taking the same annual payments — or in the case of the RMD method, be calculated and distributed correctly — until the completion of the 72(t) schedule; and
- Avoid any changes to the account balance(s) on which the 72(t) payments were calculated, other than changes via gains or losses within the account and, of course, by the 72(t) distributions themselves.
