From IRS Pub 575:Tax on Early DistributionsMost distributions (both periodic and nonperiodic) fromqualified retirement plans and nonqualified annuity con-tracts made to you before you reach age 59 1/2 are subjectto an additional tax of 10%. This tax applies to the part ofthe distribution that you must include in gross income. Itdoes not apply to any part of a distribution that is tax free,such as amounts that represent a return of your cost orthat were rolled over to another retirement plan. It alsodoes not apply to corrective distributions of excess defer-rals, excess contributions, or excess aggregate contribu-tions (discussed earlier under Taxation of NonperiodicPayments).For this purpose, a qualified retirement plan is:A qualified employee plan (including a qualified cashor deferred arrangement (CODA) under Internal Reve-nue Code section 401(k))...Additional exceptions for qualified retirement plans.The tax does not apply to distributions that are:From a qualified retirement plan (other than an IRA)after your separation from service in or after the yearyou reached age 55 (age 50 for qualified public safetyemployees) (see Separation from service , later),-drip
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