Excerpt: If you take distributions from an IRA or qualified plan 'early' (normally before age 59-1/2), you'll be subject to a 10% tax on the distribution, commonly known as the 'early withdrawal penalty.' However, there are various exceptions to this 10% penalty .... Disability can also be an exception to the penalty, although the code and regulations have been a bit vague in their definition of 'disability' here. Two recent Tax Court decisions helped clarify that definition.  MORE >>