Certain corrective distributions not subject to 10% early distribution tax

IRA distributions - including SEP-IRA, SIMPLE-IRA - can be made at any time.

There is no need to show a hardship to take a distribution. However, your distribution will be included in your taxable income and it may be subject to a 10% additional tax if you're under age of 59 1/2.

Learn more about IRA distribution and/or minimum distributions.

The additional tax is 25% if you take a distribution from your SIMPLE-IRA in the first 2 years you participate in the SIMPLE IRA plan. There is no exception to the 10% additional tax specifically for hardships.

As of 12/29/2022, the 10% additional tax on early distributions does not apply to an IRA distribution made pursuant to the rules of section 408(d)(4), which consists of a contribution for that year and any earnings allocated for contribution, as long as the distribution is made on or before the due date (including extensions) of the income tax return.

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