Is anyone here familiar with the possibility of taking a distribution of company stock dividends from a qualified plan and avoiding the 10% early withdrawal penalty? I found an IRS document that states you can avoid the penalty if the distribution is dividends from company stock in a qualified plan. The company I work for has an ESOP and they fund the distributions out of the plan by declaring a dividend on the shares to supply the money. That dividend is applied to all shares equally or course. I am a high share holder so my dividend is generally large. I'm 54 so figuring ways to access the money without the penalty could allow me to retire about any time really. I have about $650K in an IRA from rollovers from the company plan but short of a 72T on that I need to figure out an income stream in order to retire early. The balance in the company plan is large but it would be paid out over a 10 year period. If they continue to fund the distributions the same was I could take the dividend portions (or some of it) as my income each year and roll over the rest of the distribution to the IRA until I'm 59-1/2. I just haven't been able to find anyone that has done this or is familiar with it.