Generally, amounts withdrawn from an IRA before age 59 ½ are subject to an additional 10% penalty tax. Exceptions exist, including when a distribution is related to the taxpayer’s disability. In one case, a man who was under age 59 ½ took an early distribution from his IRA. He didn’t pay the 10% tax on his joint tax return because his wife was disabled and he relied on the disability exception. The IRS sent the couple a notice of deficiency. All parties agreed that the account owner himself wasn’t disabled. The U.S. Tax Court noted that the disability exception didn’t apply because it wasn’t the IRA owner that was disabled, but his wife. (TC Summary Op 2020-5)