SEP IRA

Question: Can anyone tell me the penalty for early withdrawal from a SIMPLE IRA?

Any information will help, I need to know how it will effect me when I file my taxes and what all the penaltys are.

Answer: Don’t do it if you can avoid it.

You must pay the taxes as if it was taxable when you made the Contribution, PLUS a 10% penalty on top of that. E.g. if that money would have been in the 28% bracket, you will be paying 38% on your money.

There are a few reasons you can take money out (hardship, etc.) that avoid the penalty, but you must still pay the taxes.

Rule#1: Develop a Workable Plan