To Withdraw Money From an IRA Without a Penalty, Try a '72(t)' Plan--but Carefully
If you are younger than age 59½ and want to withdraw money from your individual retirement account, there are several exceptions that could allow you to do so without incurring the 10% early-withdrawal penalty from the IRS.
One such exemption being used more often is a so-called 72(t) plan.
Under this program—named for Section 72(t)(2)(A)(iv) of the Internal Revenue Code—investors who need extra funds can arrange to take a series of equal periodic payments from their IRA, even if they are still working. They pay the usual income tax on each withdrawal, but the 10% penalty is avoided.
But there are some caveats with 72(t) plans that shouldn’t be ignored. The government wants people to have money available at retirement and discourages invasions of IRAs, so these plans come with strict rules. Any violation of those rules could trigger a harsh 10% recapture penalty that applies not only to the distribution in question, but also retroactively to all distributions previously taken under the payments plan.
More..
https://www.wsj.com/articles/withdraw-money-ira-no-penalty-72t-11659633584 (subscription)
This is really a convoluted approach, that I am not even going to copy and paste here beyond the first paragraphs.
But if you need the money, talk to an advisor. Or, perhaps, the custodian of the funds.