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Financial Planning / Tax Strategies


Subject:  Re: Penalty for early distribution from Simple I Date:  9/13/2011  5:06 PM
Author:  0x6a74 Number:  113964 of 133017

Yes, you could do that. But there would be a 10% penalty (assuming you are not yet 59.5) and it would be reportable as income.

There is a 10% federal penalty. Your state may also assess a penalty.

are there any exceptions?

if the funds are used to pay medical bills or education expenses?

(i seem to recall Steven had some recent big medical bills and is going to school)
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