You usually owe income tax when you take money out of an IRA, as well as a 10 percent penalty before age 59 1/2. However, there are some exceptions to the 10 percent surtax. If someone you know has lost a job, one of those exceptions might be helpful.
That exception applies to health insurance premiums. An individual can withdraw IRA money to pay those premiums while unemployed, penalty-free. To qualify, that person must have received unemployment compensation for at least 12 consecutive weeks. The penalty-free withdrawals, up to the amount paid for health insurance premiums, can be made in the year that unemployment compensation was received, or in the following year.