Pension, Benefits, Social Security

What are the tax consequences of an early withdrawal from a Simple IRA?

A SIMPLE IRA, also known as a “Savings Incentive Match Plan for Employees” is most common among small employers who have less than 100 employees. When Congress created SIMPLE IRAs, it intentionally imposed harsh penalties on early withdrawals because this type of retirement plan is specifically designed to force lower wage workers to save for retirement. Unlike other retirement plans, loans against the value of a SIMPLE IRA are not permitted.