Are there any exceptions to the certificate early withdrawal penalty? At our discretion, we may allow withdrawals from the account before maturity without imposing an early withdrawal penalty under one of the following circumstances: When the account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction. When the account is an individual retirement account (IRA) and any portion is paid within 7 days after the establishment of the IRA; or the account owner becomes disabled; or when the account is an IRA and the owner attains age 70½. When the account owner has elected the monthly dividend payment option, no early withdrawal penalties will be imposed on the dividend withdrawal. However, this option does effect the APY and will reduce earnings. Tax laws are subject to change. Contact a tax professional for more details.