4074 / What distributions from a tax sheltered annuity are subject to a penalty for early or premature distributions?

If a taxpayer receives a taxable amount from a tax sheltered annuity including any amount attributable to accumulated deductible contributions and including plan loan amounts treated as deemed distributions ( Q 4063), the taxpayer will be subject to an excise tax of 10 percent on that distribution unless the distribution is:

(1)  made on or after the date on which an employee attains age 59½;¹

(2)  made to a beneficiary or the employee’s estate on or after the death of the employee;²

(3)  attributable to an employee’s disability;³