Canderson03,
There are a few situations where you can use IRA money without the 10% early withdrawal penalty. These exceptions to the penalty apply if you:
- Are over the age of 59 1/2
- Are permanently or totally disabled
- Are unemployed and used the money to pay health insurance premiums
- Paid medical expenses, but only to the extent that the expenses exceed 7.5% of your AGI
- Used the money for a home purchase, for up to $10,000 of withdrawals (some additional restrictions apply)
- Paid college expenses for yourself or a dependent
- Used the money but still roll over the equivalent amount within 60 days (be cautious of the once-in-a-year rollover rules)

In any of these cases, you may still be required to report the withdrawal in income for tax purposes. You are only avoided the extra 10% early withdrawal penalty with these exceptions.

I hope that helps a little!