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Qualified Reservist

What is 'Qualified Reservist '

A member of the military reserve who is not actively serving but may be called to duty and who is eligible to make an early withdrawal from his/her individual retirement account (IRA) without incurring the usual early distribution penalty. Under most circumstances, the IRS imposes a penalty of 10% on the taxable amount withdrawn from a retirement account by a taxpayer younger than 59.5 years old.

Explaining 'Qualified Reservist '

To qualify for this exception, the reservist must be called to active duty for more than 179 days and the withdrawal must occur while the reservist is serving on active duty. These early withdrawals may still be subject to state and federal taxes.


Further Reading


The economics of military manpower
www.sciencedirect.com [PDF]
… conscription versus voluntary means, the structure of pay, the use of women and reservists, and the … World War II, individuals who successfully serve for some period of time qualify for post … are given more points and higher quotas for enlisting them rather than the lesser qualified …

Economic conditions of military familiesEconomic conditions of military families
www.jstor.org [PDF]
… conscription versus voluntary means, the structure of pay, the use of women and reservists, and the … World War II, individuals who successfully serve for some period of time qualify for post … are given more points and higher quotas for enlisting them rather than the lesser qualified …

The financial legacy of Iraq and Afghanistan: How wartime spending decisions will constrain future national security budgetsThe financial legacy of Iraq and Afghanistan: How wartime spending decisions will constrain future national security budgets
papers.ssrn.com [PDF]
… conscription versus voluntary means, the structure of pay, the use of women and reservists, and the … World War II, individuals who successfully serve for some period of time qualify for post … are given more points and higher quotas for enlisting them rather than the lesser qualified …

Militarization, stigma, and resistance: negotiating military reservist identity in the civilian workplaceMilitarization, stigma, and resistance: negotiating military reservist identity in the civilian workplace
www.tandfonline.com [PDF]
… conscription versus voluntary means, the structure of pay, the use of women and reservists, and the … World War II, individuals who successfully serve for some period of time qualify for post … are given more points and higher quotas for enlisting them rather than the lesser qualified …

The economic cost of the draftThe economic cost of the draft
www.jstor.org [PDF]
… conscription versus voluntary means, the structure of pay, the use of women and reservists, and the … World War II, individuals who successfully serve for some period of time qualify for post … are given more points and higher quotas for enlisting them rather than the lesser qualified …

Citizens coping as soldiers: A review of deployment stress symptoms among reservistsCitizens coping as soldiers: A review of deployment stress symptoms among reservists
www.tandfonline.com [PDF]
… conscription versus voluntary means, the structure of pay, the use of women and reservists, and the … World War II, individuals who successfully serve for some period of time qualify for post … are given more points and higher quotas for enlisting them rather than the lesser qualified …

Enlistment motivations of army reservists: Money, self-improvement, or patriotism?Enlistment motivations of army reservists: Money, self-improvement, or patriotism?
journals.sagepub.com [PDF]
… conscription versus voluntary means, the structure of pay, the use of women and reservists, and the … World War II, individuals who successfully serve for some period of time qualify for post … are given more points and higher quotas for enlisting them rather than the lesser qualified …

The financial legacy of Afghanistan and Iraq: How wartime spending decisions will constrain future US national security budgetsThe financial legacy of Afghanistan and Iraq: How wartime spending decisions will constrain future US national security budgets
epsjournal.org.uk [PDF]
… conscription versus voluntary means, the structure of pay, the use of women and reservists, and the … World War II, individuals who successfully serve for some period of time qualify for post … are given more points and higher quotas for enlisting them rather than the lesser qualified …



Q&A About Qualified Reservist


What is a Qualified Reservist?

A qualified reservist is someone who has been called to active duty.

Who can be called up?

Only those who are in the reserves can be called up.

Are there any exceptions to this rule?

Yes, those with dependents and those who have recently served in combat zones are exempt from this rule.

What is a qualified reservist?

A qualified reservist is a member of the military reserve who is not actively serving but may be called to duty and who is eligible to make an early withdrawal from hisher individual retirement account (IRA) without incurring the usual early distribution penalty.

Who can qualify for this exception?

Under most circumstances, the IRS imposes a penalty of 1 on the taxable amount withdrawn from a retirement account by a taxpayer younger than 59.5 years old.

What happens if you do not report when you're supposed to?

You will be charged with desertion and face imprisonment of up to five years or death penalty depending on your circumstances.

What must happen before someone can withdraw money from their IRA without penalty?

The person must be called to active duty for more than 179 days and the withdrawal must occur while they are serving on active duty.

How long does the call last?

The call lasts for 24 months.

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