Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Can I get an in-service distributions allowed from my SEP, SARSEP or SIMPLE IRA plan?

April 26, 2017allowed distributions in-service IRA Plan sarsep SEP simple

0

Posted

Can I get an in-service distributions allowed from my SEP, SARSEP or SIMPLE IRA plan?

1 Answer

0

Posted

There are no prohibitions on distributions from IRA-based plans. A participant can take distributions at any time. However, in addition to the distribution being taxable, it may be subject to a 10% additional tax if the participant has not reached age 59 1/2. If the distribution is taken in the first 2 years of participation in a SIMPLE IRA plan, the additional tax is increased to 25%.