Distributions:
Distributions from a SIMPLE IRA are subject to IRA rules and generally are includible in income for the year received.
Rollovers:
Tax-free rollovers can be made from one SIMPLE IRA into another SIMPLE IRA. However, a rollover from a SIMPLE IRA to a non-SIMPLE IRA can be made tax free only after a 2-year participation in the SIMPLE IRA plan.
Withdrawals:
Early withdrawals are subject to a 10% additional tax. However, the additional tax is increased to 25% if funds are withdrawn within 2 years of beginning participation.