SIMPLE IRA Withdrawal
I have a client who needs to withdraw money from his SIMPLE IRA account that he currently contributes to through his company. He is under 59 1/2 and I understand there will be a 10% penalty. My question is does any of the exceptions to penalty apply to SIMPLE IRAs as they do to traditional IRAs?
Permalink Submitted by Alan - IRA critic on Mon, 2013-04-08 18:26
Yes, the same penalty exceptions apply to all IRA types. However, note that if client has not met the 2 year SIMPLE IRA holding period, the portion that is penalized has a 25% penalty and that drops to 10% after the two years is met.