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There is no way to avoid paying income taxes on any withdrawals assuming that none of the funds in the IRA have been taxed previously. If you are referring to the 10% penalty tax because you are under age 59 1/2, then if you take substantially equally periodic payments (SEPP) from the IRA you can avoid the penalty. Depending on your ages, you may be able to withdraw approximately 4 - 5% as SEPPs. Once the payments begin, they must continue until age 59 1/2 and must last for at least 5 years.