Any distribution that you take from the QRP, as long as you were at least 55 years of age when you left employment, will not be subjected to the 10% penalty, only ordinary income tax. 72t is a tax strategy that allows you to take penalty free withdrawals from a 401k or an IRA before you are 59.5 in order to avoid the 10% early withdrawal penalty. Therefore, you’d have to pay the 10% penalty. The rule of 55 is an IRS provision that allows those 55 or older to withdraw from their 401(k) early without penalty. But there are some early withdrawal exceptions to these rules.Various situations might qualify you for an exception to the IRA penalty tax on withdrawals taken before you reach age 59½. 11.Reservists called to active duty for at least 179 days are not subject to the penalty. As a general rule, if you withdraw funds before age 59 ½, you’ll trigger an IRS tax penalty of 10%.The good news is that there’s a way to take your distributions a few years early without incurring this penalty. The Seventh Circuit recently confirmed that a taxpayer who could have withdrawn funds penalty-free from his former employer’s qualified retirement plan under the age-55 exception was hit with the 10% early withdrawal penalty when he rolled over his retirement plan money into an IRA and then took an early withdrawal. The general rule for tapping a 401(k) free of the 10% early-withdrawal penalty is that you must be at least age 59 1/2. Third, you don’t have to be retired to qualify for this exception to the 10% penalty. This can start at ANY age, you don’t need to be 55. Example 1: You leave your job at age 56. This type of withdrawal will be taxed and it can also be subject to an early withdrawal penalty.. But as with many rules, there is an exception. This provision only applies to QRPs, not to IRAs. The three exceptions that relate only to IRAs are as follows. Employer-sponsored, tax-deferred retirement plans like 401(k)s and 403(b)s have rules about when you can access your funds. Individuals under age 59 ½ and advisors need to be aware of the restrictions on the exceptions to the 10% early distribution penalty. If you happen to be over age 55 when you leave employment, there is another exception that applies. Example 2: You get laid off from your job at age 54 and don’t turn 55 until next year. For example, if you left your employer at age 53, even if you are now age 55, distributions from your 401(k) with that employer would still be subject to the 10% penalty, unless you meet one of the other exceptions. 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