I want to know what are the penalties that an individual will face if they withdraw on a SIMPLE IRA outside of a hardship distribution?
(Additionally) I noticed in another post someone mentioned a '2-year rule' as well. If there is such a thing, how does it factor into this equation?
The 2 year rule means that the penalty will be 25% in addition to your ordinary income tax rates, not the standard 10%.
Other than that its exactly the same as a traditional IRA.
Info at the IRS Q&A What are the tax consequences when amounts are distributed from a SIMPLE IRA?
