Question by  psychomom (58)

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


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.


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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