Skip to main content
June 6, 2019
Solved

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

  • June 6, 2019
  • 1 reply
  • 0 views
No text available
Best answer by Phillip1

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 reply

Phillip1Answer
Employee
June 6, 2019

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%.