Definitions for "premature distribution"
A withdrawal before age 59 1/2 from a qualified retirement plan, usually accompanied by a penalty.
A non-qualified distribution received from a qualified retirement plan before age 591/2. The distribution may be subject to federal income tax, state income tax and a 10% premature distribution penalty.
A distribution from an IRA before the owner reaches age 59-1/2. Generally, a 10% penalty tax is owed on the distribution. Also known as an early distribution or an early withdrawal.