In a perfect world, your pre-retiree clients would never have a need to dip into their IRA savings. However, if special and unforeseen circumstances arise and they need to dig into their IRA nest egg, U.S. News and World Report offers some ways to avoid the penalty for making an early withdrawal.
Medical expenses. If your clients spend more than 7.5 percent of their income on unreimbursed medical expenses, they can use an IRA withdrawal to pay for health care above that amount, the publication writes.
Health insurance. Workers who receive unemployment benefits for 12 consecutive weeks can use their IRA to pay for health insurance. Only distributions received during the year unemployment benefits were received or the year following are exempt from the penalty.