investing






 

Question by  psychomom (58)

What are the penalties for cashing out a Simple IRA early?

 
+7

Answer by  timeismoney (994)

The chief penalty is that you must pay income taxes on the entire amount you withdraw. Thus, you can immediately lose more than twenty-five percent of the cash.

 
+6

Answer by  Gus21 (6)

Cashing a Simple IRA before age 59 usually carries a penalty of 10%, with the exceptions of buying a first home and financing schooling for self, spouse, children and grandchildren.

 
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