Answer :
Final answer:
Qualified Public Safety (QPS) withdrawals from an IRA are not subject to a 10% early withdrawal penalty, but non-QPS withdrawals may be subject to the penalty.
Explanation:
Qualified Public Safety (QPS) withdrawals from an IRA are not subject to a 10% early withdrawal penalty. QPS withdrawals are specific to individuals who serve as police officers, firefighters, or emergency medical personnel. These individuals can withdraw funds from their IRA without penalty if they meet certain criteria and the withdrawals are used for qualified expenses related to their service.
For example, a police officer who needs to purchase a new police uniform or a firefighter who needs to cover medical expenses resulting from work-related injuries may be able to withdraw funds from their IRA without facing the early withdrawal penalty.
In contrast, non-QPS withdrawals from an IRA may be subject to a 10% early withdrawal penalty if the individual is under the age of 59½ and does not meet any of the other exceptions to the penalty.
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