The IRS also has a set early distribution penalty of 10 percent should you decide to pull your money out of your IRA early -- that is, unless your IRA is a SIMPLE plan. A special tax penalty of 25 percent applies to any early distribution from the SIMPLE IRA within the first two years of a newly-opened account.he IRS also has a set early distribution penalty of 10 percent should you decide to pull your money out of your IRA early -- that is, unless your IRA is a SIMPLE plan. A special tax penalty of 25 percent applies to any early distribution from the SIMPLE IRA within the first two years of a newly-opened account.
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