Self-Employment 7-63 33. Internet Problem: Researching the Instructions to Form 5329. (Obj. 6) Normally a 10% penalty is assessed when employees and self-employed taxpayers take distributions from a retirement plan before reaching age 591//2. However, exceptions do exist. Describe the various circumstances under which individuals can take early distributions from the various retirement plans discussed in Chapter 7 and not have to pay the 10% penalty. Go to the IRS website. Locate the Instructions for Form 5329, and find the answer to the above question regarding exceptions to the 10% penalty. Print out a copy of the page(s) where you found your answer. Underline or highlight the pertinent information. See Appendix A for instructions on using the IRS website