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New Member
posted Jun 6, 2019 6:17:33 AM

Does anyone know the additional penalties, beyond the 10% penalty of an early withdrawal from a profit sharing plan?

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1 Best answer
New Member
Jun 6, 2019 6:17:34 AM

The only additional tax for an early withdrawal from most qualified plans is the 10% penalty. 

However, if the withdrawal is from a SIMPLE IRA  in the first 2 years that the taxpayer participates in the plan, the 10% tax jumps to 25%.

1 Replies
New Member
Jun 6, 2019 6:17:34 AM

The only additional tax for an early withdrawal from most qualified plans is the 10% penalty. 

However, if the withdrawal is from a SIMPLE IRA  in the first 2 years that the taxpayer participates in the plan, the 10% tax jumps to 25%.