The National Directory of Certified Public Accountants

Ask A CPA - SIMPLE IRAs

What Is The Penalty Rate On A SIMPLE Plan Withdrawal In The First Year?

If you withdraw money from a SIMPLE IRA in the first 2 years, you will be subject to a 25% withdrawal penalty. This is 15% higher than a traditional IRA premature distribution penalty.

If you need professional help with "SIMPLE IRAs" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.