Distributions from a retirement plan are not subject to a 10% additional tax in each of the following instances except when

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Quizplus · Accepted Answer

Distributions from a retirement plan are generally subject to a 10% additional tax if withdrawn before age 59½. However, there are certain exceptions to this rule, such as when the distribution is used to pay for medical expenses above the 10% AGI threshold, to pay an IRS tax levy on the plan, or in the case of death or disability of the account holder. In option B, the distribution is paid to an employee to be used to pay health insurance premiums, which is also an exception to the 10% additional tax. Option D is incorrect as it is a general rule that applies to all retirement plan distributions made after age 59½, not an exception to the 10% additional tax.

Distributions from a Retirement Plan Are Not Subject to a 10