Posted on: 18th Mar, 2010 05:50 pm
Do I have to pay the ten percent penalty on early withdrawal from my simple plan if I use the money to add solar to my home that I own?
Hi net,
Early withdrawals from your simple IRA will attract penalties. If you are withdrawing money within the first 2 years after the first contribution is made to the simple IRA account, you will be subject to a hefty penalty of 25%. Moreover, if the withdrawal is made before the age of 59.5, you will have to pay an additional penalty of 10%. The withdrawal is exempt from penalty under certain conditions. But if you are not purchasing a primary home and are simply adding solar to my home, your withdrawal will not be exempt from penalty.
Early withdrawals from your simple IRA will attract penalties. If you are withdrawing money within the first 2 years after the first contribution is made to the simple IRA account, you will be subject to a hefty penalty of 25%. Moreover, if the withdrawal is made before the age of 59.5, you will have to pay an additional penalty of 10%. The withdrawal is exempt from penalty under certain conditions. But if you are not purchasing a primary home and are simply adding solar to my home, your withdrawal will not be exempt from penalty.