The IRS posted a tax tip regarding early withdrawals from retirement plans.

Typically withdrawing money from a retirement plan before age 59 1/2 is considered an early withdrawal.

Early withdrawals from retirement plans must be reported to the IRS.  A 10% tax penalty is usually owed for early withdrawals but there are exceptions to this rule.  You can see the whole list of exceptions here.

Form 5329 may need to be filed for an early withdrawal from a retirement plan.

Click here to read the complete IRS tax tip about early withdrawals from retirement plans.