Individual Retirement Accounts (IRAs) are an important tool in retirement planning. However, early distributions prior to age 59 ½ can be subject to the §72(t)10% early distribution penalty (IRC §72(t)). There are several exemptions to the penalty. This paper looks at the specific exemptions and focuses primarily on the court findings covering § 72(t)(8). The research shows that there are four primary reasons why taxpayers did not qualify for the exemption. Several taxpayers did not qualify as first-time homebuyers since they already had an ownership interest in a principal residence. In one instance, the taxpayer did not qualify because they had no ownership interest in the property the distribution was used to purchase. A few taxpayers failed to meet the exemption because the distribution came from retirement accounts that were not IRAs. The § 72(t)(8) exemption only applies to distributions from IRAs. Other taxpayers failed to meet the requirements for exemption because they did not use the distribution within the 120-day window. The court findings indicate that strict adherence to the law is required for qualification of the exemptions.