You can withdraw money from your IRA at any time, but removing funds from your account before reaching the age of 59 1/2 can be costly. In most cases, you will have to pay a 10 percent penalty on the amount you withdraw, plus income tax on the earnings.

There are exceptions for early withdrawal penalties on an IRA, however. Some exceptions to this penalty: you use the money (up to $10,000) to build, rebuild, or buy a first home; you become disabled; you use the money to pay for qualified higher education expenses; or you use the money to settle a divorce under certain conditions. If you make a withdrawal from your IRA before you reach the age of 59 1/2 for any of these reasons, you can avoid the 10 percent early withdrawal penalty. You also are exempted from paying the 10 percent penalty if you use the money to pay deductible medical expenses that exceed 7.5 percent of your annual adjusted gross income or if you withdraw money to pay health insurance premiums for yourself and family after you lose your job and receive at least 12 consecutive weeks of unemployment income.

Before withdrawing any money from your IRA, however, consult with a professional. Determining what qualifies as an exception to early withdrawal penalties can be confusing, and mistakes can be costly. If you do decide to make an early withdrawal from your IRA, be aware that there are some forms you may need to fill out and IRS guidelines that you need to follow.