Which of the following scenarios would qualify for the exceptions to the 10% penalty rule?

The scenario that qualifies for the exceptions to the 10% penalty rule is associated with the death of the account holder. When an account holder who is under the age of 59½ passes away, their beneficiaries or heirs can access the retirement account assets without incurring the 10% early withdrawal penalty. This exception is designed to provide relief during a time of loss, allowing beneficiaries to access necessary funds without the additional financial burden of penalties often associated with early withdrawals.

Accessing retirement funds for reasons such as buying stocks, purchasing luxury goods, or paying off credit card debt typically does not qualify for the exceptions to the penalty. Each of these actions is considered a discretionary spending decision rather than a necessity or a situation where the IRS allows a penalty-free withdrawal. Thus, they do not meet the criteria set forth in tax law for penalty-free early retirement account distributions.